In a two product two country world, international trade can lead to increases in
A) consumer welfare only if output of both products is increased.
B) output of both products and consumer welfare in both countries.
C) total production of both products but not consumer welfare in both countries.
D) consumer welfare in both countries but not total production of both products.
E) prices of both goods in both countries.
B
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Which of the following is likely to happen if the government lowers tax rates?
A) Price level will fall. B) Investment will decrease. C) Consumption will increase. D) Unemployment will increase.
If nominal GDP increases, which of the following will always take place?
A) Output will have increased but prices will have fallen or remained the same. B) Prices will have increased but output will have fallen or remained the same. C) Both output and prices will have increased. D) none of the above