In Order to Analyze Migration in the Long Run, It

question 75

Multiple Choice

In order to analyze migration in the long run, it is appropriate to use:

• A) the specific-factors model with free movement of labor across borders.
• B) the Heckscher-Ohlin model with free movement of labor across borders.
• C) the Ricardian model with no movement of labor across borders.
• D) the PPF modified for three goods, three factors of production (all fixed), and three nations.

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Definitions:

Rational Expectationists

Economic theorists who believe individuals make predictions based on available information and in a way that errors cancel out over time.

Recessionary Gaps

A situation in macroeconomics where the real GDP is lower than the potential GDP, indicating underutilized resources and less-than-full employment in the economy.

Inflationary Gaps

Situations where the demand for goods and services exceeds the production capacity of the economy, leading to an upsurge in price levels.

Classical Economists

A group of economists in the 18th and 19th centuries who believed in free markets, the self-regulating nature of economies, and the importance of competition.