This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: The figure above illustrates aggregate demand and aggregate supply in Sparta. Sparta's price level ... (Read 47 times)

penguins

  • Hero Member
  • *****
  • Posts: 903
on: Jun 29, 2018
The figure above illustrates aggregate demand and aggregate supply in Sparta. Sparta's price level will rise above 100 if ________.
 
  A) government expenditure decreases
  B) the quantity of money increases
  C) the quantity of capital increases
  D) taxes increase

Question 2

Define comparative advantage and discuss its role in international trade.
 
  What will be an ideal response?


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

amcvicar

  • Sr. Member
  • ****
  • Posts: 341
Reply #1 on: Jun 29, 2018
Answer to Question 1

B

Answer to Question 2

Comparative advantage is the factor that drives international trade. A country has a comparative advantage in the production of a good if the country can produce it at a lower opportunity cost than any other country. Because the cost of production of a good is lower in the nation with the comparative advantage in the good, that country will export the good. The country will then gain by buying the goods from other nations that those nations produce at the lowest opportunity cost, that is, those goods in which the other nations have a comparative advantage.


penguins

  • Member
  • Posts: 903
Reply 2 on: Jun 29, 2018
YES! Correct, THANKS for helping me on my review

Zebsrer

  • Member
  • Posts: 284
Reply 3 on: Yesterday
Great answer, keep it coming :)

« previous next »
 

Did you know?

Blastomycosis is often misdiagnosed, resulting in tragic outcomes. It is caused by a fungus living in moist soil, in wooded areas of the United States and Canada. If inhaled, the fungus can cause mild breathing problems that may worsen and cause serious illness and even death.

Did you know?

There are 60,000 miles of blood vessels in every adult human.

Did you know?

Astigmatism is the most common vision problem. It may accompany nearsightedness or farsightedness. It is usually caused by an irregularly shaped cornea, but sometimes it is the result of an irregularly shaped lens. Either type can be corrected by eyeglasses, contact lenses, or refractive surgery.

Did you know?

The term pharmacology is derived from the Greek words pharmakon("claim, medicine, poison, or remedy") and logos ("study").

Did you know?

Patients who have been on total parenteral nutrition for more than a few days may need to have foods gradually reintroduced to give the digestive tract time to start working again.

The power and control wheel illustrates the strategies that one partner may use to intimidate, ... The power and control wheel illustrates the strategies that one partner may use to intimidate, ...
An angiogram that illustrates narrowing of the carotid artery (see arrow), the main pathway of blood ... An angiogram that illustrates narrowing of the carotid artery (see arrow), the main pathway of blood ...
How to create a price index to calculate inflation for a basket of goods How to create a price index to calculate inflation for a basket of goods
Colossal Figure of Akhenaten Colossal Figure of Akhenaten
Blood Supply to the Lungs Blood Supply to the Lungs
What level of barometric pressure effects body? What level of barometric pressure effects body?
Video: Allergic Rhinitis

For a complete list of videos, visit our video library