Economists use the phrase “business cycle” when discussing

According to the product life cycle model, comparative advantage

A) may move from one country to another as a product matures. B) always stays in the country where a product is invented. C) in agricultural or homogeneous manufactured goods is determined by the stage of the life cycle these products are in. D) Both A and C.

If fiscal policy authorities believe that the natural rate of unemployment is lower than it actually is, and pursue fiscal policies to move economic output to what they believe full employment to be, then which of the following is most likely to occur?

a. A recession b. Runaway inflation c. Increasing unemployment d. A depression