If expectations are "rational," can the Fed control unemployment?
a. Yes, provided it announces policy in advance.
b. Yes, if it affects the aggregate demand curve.
c. No, because aggregate supply is vertical even in the short run.
d. No, because only fiscal policy can affect unemployment.
c
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Figure 17-6
The domestic country is China.
Refer to . If China were to abandon a no-trade policy in favor of a free-trade policy,
a.
Chinese producers of pencil sharpeners would become worse off.
b.
Chinese consumers of pencil sharpeners would become better off.
c.
total surplus in the Chinese economy would increase.
d.
All of the above are correct.
This graph demonstrates the domestic demand and supply for a good, as well as the world price for that good.According to the graph shown, if this economy were to open to trade, which amount of surplus would be transferred?
A. Area BC would be transferred to the consumer. B. Area BC would be transferred to the producer. C. Area BCD would be transferred to the consumer. D. Area BCD would be transferred to the producer.