Planned investment would experience the least amount of crowding out when the aggregate demand curve shifts from -
A) AD1 to AD2. B) AD3 to AD4. C) AD5 to AD6. D) The amount of crowding out is the same for all AD curve shifts shown in the figure.
Part 6: When aggregate supply is vertical, economic policies concerning output are -
A) ineffective. B) completely effective. C) marginally effective. D) largely effective.
Part 7: An intended goal of expansionary fiscal policy and an easing of monetary policy is-
A) an increase in the price level. B) an increase in the level of aggregate output. C) an increase in interest rates . D) the equalization of the distribution of income.
Part 8:The the United States would have an absolute advantage compared to Canada in the production of wheat if-
A) wheat can be produced at a lower cost in terms of other goods than it could be in Canada.
B) the United States uses fewer resources to produce wheat than Canada does.
C) wheat sells for a higher price in the United States than in Canada.
D) the demand for wheat is higher in the United States than in Canada.
Part 9: India has a comparative advantage compared to Spain in the production of clothing if-
A) India can produce clothing at a lower monetary cost than Spain can.
B) the demand for clothing is higher in India than in Spain.
C) India can produce clothing at a lower cost in terms of other goods than Spain can.