In the Ricardian model, wages are equal across industries because:

a. employers care for their workers.
b. workers prefer to work in exporting industries.
c. workers are freely mobile between industries.
d. workers are freely mobile between countries.

Ans: c. workers are freely mobile between industries.

Economics

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A drop in velocity means that at any nominal GDP there is a desire to hold a ________ proportion of assets in money form, thus ________ shift in the LM curve

A) larger, a downward B) larger, an upward C) smaller, a downward D) smaller, an upward

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In the classical model, we include unintended inventory changes

a. True b. False

Economics