The Assumption That Prices and Wages Are Flexible Implies That

question 33

Multiple Choice

The assumption that prices and wages are flexible implies that the:

• A)Short-run aggregate supply curve is irrelevant
• B)Short-run aggregate supply curve shifts slowly in response to deviations of current output from potential output
• C)Long-run aggregate supply curve is irrelevant
• D)Long-run aggregate supply curve could not shift

Analyze the impact of world price changes on imports and exports.

Distinguish between absolute and comparative advantage in international trade.

Recognize the fallacies associated with low-wage labor and its implications for trade.

Comprehend the role of the Heckscher-Ohlin model in predicting trade patterns based on factor endowments.

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Definitions:

Dendritic Spines

Small protrusions from a neuron's dendrite that typically receive synaptic inputs.

Neurons

Specialized cells of the nervous system that transmit information to other neurons, muscles, or glands.

Apraxia

A neurological disorder characterized by the loss of the ability to execute or carry out learned purposeful movements, despite having the desire and physical ability to perform the movements.

Agnosia

A neurological disorder characterized by the inability to recognize and process sensory information, typically despite normal sensory function.