Figure 32.1 represents the market for loanable funds. The equilibrium interest rate

Suppose the lack of agricultural land is a key reason for the slow economic growth of Lithasia. This argument claims that:

A) geography is the fundamental cause of slow economic growth in Lithasia. B) stock of physical capital is a fundamental cause of slow economic growth in Lithasia. C) stock of human capital is a proximate cause for slow economic growth in Lithasia. D) geography is a proximate cause of slow economic growth in Lithasia.

Keynesian macroeconomists argue that the short-run Phillips curve ________ represent a usable trade-off for policymakers because ________

A) does; prices are sticky B) does; prices are not sticky C) does not; prices are not sticky D) does not; prices are sticky