Author Question: Specialization and trade make a country better off because with trade, the country can consume at a ... (Read 149 times)

Bernana · **on:** Jun 29, 2018

Specialization and trade make a country better off because with trade, the country can consume at a point

A) on its production possibilities frontier.
B) on its trading partner's production possibilities frontier.
C) inside its trading partner's production possibilities frontier.
D) outside its production possibilities frontier.
E) inside its production possibilities frontier.

Question 2

________ could result in a recession because it would ________.

A) An increase in government expenditures on goods and services; shift the AD curve to the right.
B) An increase in the quantity of money; shift the AS curve to the right.
C) An increase in investment; shift the AD curve to the right.
D) A tax cut; shift the AS curve to the left.
E) A rise in the price of oil; shift the AS curve to the left.