Suppose that land is specific to agriculture, capital is specific to manufacturing, and labor is mobile between sectors. According to the specificfactors model, if this country begins importing manufactured goods, which factor will experience the highest unemployment?

Refer to the information provided in Table 36.3 below to answer the question(s) that follow. Table 36.3 PointAggregate Income (Y)Aggregate Consumption (C)  A  15  19   B  30  23  C  45  27  D  60  31  E  75  35   F  90  39The data in the table was used to estimate the following consumption function: C = 20 + 0.2YRefer to Table 36.3. Which of the following points is (are) the best fit for the given consumption function?

A. A B. A, B, C and D C. D and F D. E

To offset the effect of a steep fall in net exports on the economy, the government might: a. increase government purchases. b. decrease government purchases. c. increase taxes

d. none of the above.