Price level AD Potential GDP Yfull AS Real GDP Consider the economy represented by the AD/AS diagram above, where the economy is not at full employment (Yfull). Which policy would be one that a Keynesian economist might suggest to the government? O A. Reduce government spending on bridges and roads OC. Increase taxes on consumers OB. Decrease tariffs (taxes on imports) D. Decrease the rent because the rent is too high E. Government building of a new bridge to an island off the coast of Maryland

Antonio and Caroline are farmers. Each one owns a 20-acre plot of land. The following table shows the amount of alfalfa and barley each farmer can produce per year on a given acre. Each farmer chooses whether to devote all acres to producing alfalfa or barley or to produce alfalfa on some of the land and barley on the rest.   Alfalfa Barley (Bushels per acre) (Bushels per acre) Antonio 40 8 Caroline 28 7   ___________has an absolute advantage in the production of alfalfa, and __________  has an absolute advantage in the production of barley.   Antonio's opportunity cost of producing 1 bushel of barley is ____   bushels of alfalfa, whereas Caroline's opportunity cost of producing 1 bushel of barley is______   bushels of alfalfa. Because Antonio has a ______ opportunity cost of producing barley than Caroline,________ has a comparative advantage in the production of barley and_______ has a comparative advantage in the production of alfalfa.

Supply and Demand: End of Chapter Problems 9. Adjust each graph to show the indicated change. In each graph, click on the line or its midpoint to see the options. a. An increase in quantity demanded b. A decrease in demand Quantity Question Source: Chiang 4e- Economics Princidles FoHA Changing World Publisher: Worth 11:06 PI 65°F 10/13/20 Price

Table 1: Market for Skis P 0 20 40 60 80 Qd 25 20 15 10 5 100 0 Qs 0 4 8 12 16 20