This topic contains a solution. Click here to go to the answer

Author Question: Suppose Freeland produces few consumption goods and many investment goods while Liberty Nation ... (Read 128 times)

formula1

  • Hero Member
  • *****
  • Posts: 666
Suppose Freeland produces few consumption goods and many investment goods while Liberty Nation produces few investment goods and many consumption goods. Other things equal, you would expect
 a. per capita income to grow more rapidly in Liberty Nation.
 b. population to grow faster in Liberty Nation.
 c. the production possibilities curve for Freeland will shift out more rapidly than that of Liberty Nation.
 d. that if both countries started with identical production possibilities curves, in twenty years, people in Liberty Nation will be able to produce more consumer goods than people in Freeland.

Question 2

When the price level rises as a result of a decrease in aggregate supply, it is called cost-push inflation.
 a. True
  b. False
  Indicate whether the statement is true or false



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

tennis14576

  • Sr. Member
  • ****
  • Posts: 334
Answer to Question 1

c

Answer to Question 2

True




formula1

  • Member
  • Posts: 666
Reply 2 on: Jun 30, 2018
YES! Correct, THANKS for helping me on my review


parshano

  • Member
  • Posts: 333
Reply 3 on: Yesterday
Thanks for the timely response, appreciate it

 

Did you know?

Vaccines prevent between 2.5 and 4 million deaths every year.

Did you know?

Glaucoma is a leading cause of blindness. As of yet, there is no cure. Everyone is at risk, and there may be no warning signs. It is six to eight times more common in African Americans than in whites. The best and most effective way to detect glaucoma is to receive a dilated eye examination.

Did you know?

Giardia is one of the most common intestinal parasites worldwide, and infects up to 20% of the world population, mostly in poorer countries with inadequate sanitation. Infections are most common in children, though chronic Giardia is more common in adults.

Did you know?

The first successful kidney transplant was performed in 1954 and occurred in Boston. A kidney from an identical twin was transplanted into his dying brother's body and was not rejected because it did not appear foreign to his body.

Did you know?

Cucumber slices relieve headaches by tightening blood vessels, reducing blood flow to the area, and relieving pressure.

For a complete list of videos, visit our video library