Author Question: By specializing and trading, a country is able to A) produce but not to consume combinations of ... (Read 62 times)

ts19998 · **on:** Jun 29, 2018

By specializing and trading, a country is able to

A) produce but not to consume combinations of goods that lie beyond its production possibilities frontier.
B) consume but not to produce combinations of goods that lie beyond its production possibilities frontier.
C) obtain the absolute advantage in the goods it produces.
D) both produce and consume combinations of goods that lie beyond its production possibilities frontier.
E) neither produce nor consume combinations of goods that lie beyond its production possibilities frontier.

Question 2

Real GDP definitely increases if

A) the AS curve shifts leftward and the AD curve does not shift.
B) the AD curve shifts leftward and the AS curve shifts rightward.
C) both the AD curve and the AS curve shift rightward.
D) both the AD curve and AS curve shift leftward.
E) potential GDP decreases so that real GDP exceeds potential GDP.