Answer the following questions true (T) or false (F)
1. Once a country has a comparative advantage in producing a product, it cannot lose that advantage.
2. One reason a country does not specialize completely in production is that production of most goods involves increasing opportunity costs.
3. One of the main sources of comparative advantage is natural resources.
1. FALSE
2. TRUE
3. TRUE
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If the quantity of money supplied ________ the quantity demanded, in the long run the value of money ________
A) is less than; does not change unless the Fed increases the money supply B) exceeds; falls as people spend their surplus money C) is less than; falls as people spend their surplus money D) exceeds; rises as people buy bonds E) equals; equals zero
When examining the causes of unemployment, Keynes focused on
A) financial markets. B) inflationary expectations. C) changes in technology. D) aggregate demand.