Author Question: For any given increase in spending that is not directly caused by an increase in income, the impact ... (Read 60 times)

jjjetplane · **on:** Jun 30, 2018

For any given increase in spending that is not directly caused by an increase in income, the impact on equilibrium GDP is greater than the initial spending increase.

Indicate whether the statement is true or false

Question 2

The basis for free trade is the concept of

A) absolute advantage.
B) differences in natural resources and climate.
C) differences in nominal wages.
D) comparative advantage.