The demand curve for a Giffen good slopes upward

In a simple macroeconomic model, replacing the assumption of exogenous investment with the accelerator theory of investment ________ the effect on equilibrium GDP of fiscal policy changes, and ________ the effect on equilibrium GDP of changes in

autonomous consumption. A) increases, increases B) increases, dampens C) dampens, increases D) dampens, dampens

Which of the following is true if a country specializes in producing the goods for which it has a comparative advantage and then trades?

A. Output increases, and everyone in the economy benefits. B. Income is redistributed toward import-competing industries. C. There are gainers and losers, but the country as a whole is better off. D. Losers may outweigh the gainers, and a country may be worse off.