Money neutrality states that
A) with money, one can still use the representative agent.
B) changes in money do not affect real aggregates.
C) changes in inflation do not affect real aggregates.
D) monetary policy is independent from politics.
B
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Assume goods X and Y are complements. A decrease in the price of X would cause the demand for Y to increase
Indicate whether the statement is true or false
The United States produces both automobiles and computers more efficiently than Mexico. Nevertheless, it is possible that both nations would benefit from trade in these items. The reason for this is
a. the law of comparative advantage. b. the inflation-unemployment trade-off. c. externalities. d. the cost disease of personal services. e. attempts to repeal the law of supply and demand.