Author Question: An economy that grows in world interdependence experiences (a) growing trade on the basis of ... (Read 119 times)

LaDunn · **on:** Jun 30, 2018

An economy that grows in world interdependence experiences

(a) growing trade on the basis of comparative advantage.
(b) more vulnerability to the business cycles of trading partners.
(c) wealth accumulation.
(d) all of the above.

Question 2

In the IS-LM model, the implicit assumption made about aggregate supply was that the

a. aggregate supply schedule was vertical because prices were flexible.
b. aggregate supply schedule was horizontal because prices were fixed.
c. aggregate supply schedule was upward sloping to the right because wages and prices were fixed.
d. supply of output was fixed.
e. none of the above.