When operating on its PPF, a country can produce 2 tons of butter and 200 cars OR 3 tons of butter and 150 cars. The opportunity cost of 1 ton of butter is ________ cars per ton of butter

If we knew that the price of goods rose, on average, by 5 percent last year and by 4 percent this year, we would know

a. nothing about the rate of inflation b. that the inflation rate is rising c. that the inflation rate is falling d. that we are in a stagflation e. that we are in a recession

The open economy effect refers to the fact that

A. the slope of the aggregate demand curve is partially explained by the reduction in the desire to buy fewer U.S. goods by U.S. residents and foreign residents as a result of a higher price level. B. the position and shape of the long run aggregate supply curve is partially due to the fact that we import goods. C. the aggregate supply curve shifts when the economy grows. D. the immigration policies of the United States are disruptive to labor markets.