Author Question: In one week Alice can produce 5 pairs of shoes or 4 bookshelves while Roger can produce 10 pairs of ... (Read 120 times)

notis · **on:** Jun 29, 2018

In one week Alice can produce 5 pairs of shoes or 4 bookshelves while Roger can produce 10 pairs of shoes or 6 bookshelves. Alice should specialize in the production of

A) shoes.
B) bookshelves.
C) either shoes or bookshelves.
D) neither shoes nor bookshelves.

Question 2

In the first half of 2008, food and energy costs in the United States increased. At the same time, the financial crisis slowed production as firms predicted lower profits. A ________ macroeconomist would support the use of ________.

A) classical; taxes to push the economy back to full employment
B) Keynesian; fiscal or monetary policy to stimulate aggregate demand
C) classical; monetary policy to stimulate aggregate demand
D) Keynesian; technology to push the economy back to full employment