Which of the following is true of exchange?
A) Exchange permits trading partners to expand their total output of goods and services as the result of greater specialization in areas where each has a comparative advantage.
B) The total output that trading partners are able to produce is not influenced by whether they trade with each other.
C) Exchange is a zero sum activity; if one party gains, the other must lose an equal amount.
D) The exchange value of a good is determined by the cost of the resources required to produce the good.
A) Exchange permits trading partners to expand their total output of goods and services as the result of greater
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Refer to the above figure. Which arrows represent items that are measured in dollar terms?
A) Arrows A and B B) Arrows C and D C) Arrows A and D D) Arrows B and C
If the expenditure multiplier is 5, the slope of the aggregate expenditure (AE) curve is
A) 0.2. B) 0.5. C) 0.8. D) 0.7. E) 0.6.