ECON 1BB3 Chapter Notes - Chapter 8: Technological Change, R&S Records, Production Function

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23 Apr 2018

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McMaster University

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Economics

Course

ECON 1BB3

Professor

Bridget O' Shaughnessy

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Document Summary

Economic growth is shown by an outward shift of the production possibilities frontier. Increase in resources (labour supply or capital stock) Labour supply increases either bc of pop. growth or bc existing population works more. Capital stock increases if the economy produces more capital this year. Breakthrough in technology also shift out the frontier, it can improve the quality of capital or enhance the productivity of any resource. Improvement in the rules of game nurtures production and exchange, and promotes growth and expands the frontier. An economy that produces more capital this year is said to invest more in capital. To invest more, people must give up some consumer goods this year. Production: a process that transforms resource into g&s. Productivity: the ratio of a specific measure of output (ex. Real gdp), to a specific measure of input (ex. labour); in this case productivity measures real gdp per hour of labour. The greater the productivity, the more can be produced.

Related Questions

A bowed out PPF reflects which of the following ideas?

i.increasing opportunity cost

ii. resources are not equally productive in all activities

iii. prices of goods increase over time

		I only
		I and iii
		ii and iii
		I and ii

1 point

QUESTION 2

With no international trade, a country ________ consume at a point outside of its PPF; with international trade, a country ________ consume at a point outside of its PPF.

		can; cannot
		cannot; can
		cannot; cannot
		can; can

1 point

QUESTION 3

If the production possibilities frontier between two goods is a straight line, then the

		the line does not qualify as a production possibilities frontier because the unattainable production points are too close to the inefficient production points.
		opportunity cost is not a ratio.
		increasing opportunity costs.
		resources are equally productive in both goods.

1 point

QUESTION 4

As an economy produces more of one of the goods on a bowed out production possibilities frontier, what happens to the opportunity cost of producing the good?

		It might increase, decrease, or remain constant depending on how much people value the additional units of the good.
		It decreases.
		It increases.
		It remains constant.

1 point

QUESTION 5

"Comparative advantage" is defined as a situation in which one person can produce

		more of a good than another person.
		a good for a lower dollar cost than another person.
		a good for a lower opportunity cost than another person.
		more of all goods than another person.

1 point

QUESTION 6

When a production possibilities frontier is bowed outward, as more of one good is produced, its opportunity cost

		increases.
		decreases.
		might increase, decrease, or remain constant depending on how much people value the additional units of the good.
		remains constant.

1 point

QUESTION 7

A bowed out production possibility frontier shows that the

		opportunity cost relationship is linear.
		the opportunity cost of a good is constant as more of the good is produced.
		the opportunity cost of a good increase as more of the good is produced.
		the opportunity cost of a good decrease as more of the good is produced.

1 point

QUESTION 8

Which of the following statements is correct?

		The production possibilities frontier shows that there are no limits to production.
		Any point on or within the PPF is production efficient.
		If capital is idle, the economy is producing at its full potential.
		A tradeoff is a limit that forces an exchange or a substitution of one thing for something else.

1 point

QUESTION 9

A major earthquake occurs in the central part of the United States. What impact would this have on the nation's production possibilities frontier and why?

		A tradeoff would occur to replace the resources and goods destroyed.
		It would shift inward because some of the nation's resources, such as capital and labor, would be destroyed.
		It would shift outward because unemployment would be reduced.
		Nothing would happen because the nation would still have the same capabilities.

1 point

QUESTION 10

When a nation is producing on its production possibilities frontier, if more resources are used to produce one good, then the production of other goods

		must increase.
		must decrease.
		must remain the same.
		must change but they might increase or decrease.

1 point

QUESTION 11

Moving along a country's PPF, a reasonable opportunity costs increase is that

		unemployment increases as a country produce more and more of one good.
		unemployment decreases as a country produces more and more of one good.
		some resources are better suited for producing one good rather than the other.
		technology declines as a country produce more and more of one good.

1 point

QUESTION 12

A reason the production possibilities frontier exists is

		scarcity of resources and unlimited technology.
		unemployment.
		scarcity of resources.
		unlimited resources and technology.

1 point

QUESTION 13

Moving from one point to another on a production possibilities frontier implies

		increasing the production of one good and decreasing the production of another.
		increasing the production of both goods.
		decreasing the production of both goods.
		holding the production levels of both goods constant.

1 point

QUESTION 14

Specialization and trade make a country better off because with trade the country can consume at a point

		outside its production possibilities frontier.
		on its trading partner's production possibilities frontier.
		inside its production possibilities frontier.
		on its production possibilities frontier.

1 point

QUESTION 15

The production possibilities frontier is the

		the boundary between the combinations of goods and services that can be produced and the combinations that cannot be produced when technology is changing.
		the minimum output that can be produced when resources are used inefficiently.
		the boundary between the combinations of goods and services that can be produced and the combinations that cannot be produced, given the available factors of production and the state of technology.
		maximum output that can be produced at an opportunity cost of zero.

1 point

QUESTION 16

The opportunity cost of economic growth is ________ and the benefit of economic growth is ________.

		decreased current consumption; decreased future consumption
		decreased current consumption; increased future consumption
		increased current consumption; increased future consumption
		increased current consumption; decreased future consumption

1 point

QUESTION 17

In terms of a nation's production possibilities frontier, what impact does international trade have?

		International trade shifts the nation's production possibilities frontier outward.
		International trade shifts the production possibilities frontier outward for the goods that are exported and inward for the goods that are imported.
		International trade shifts the nation's production possibilities frontier inward.
		International trade allows the nation to consume at a point outside its production possibilities frontier.

1 point

QUESTION 18

The production possibilities frontier illustrates the

		goods and services that people want.
		limits to people's wants.
		resources the economy possesses, but not it is the level of technology.
		maximum combinations of goods and services that can be produced.

1 point

QUESTION 19

As we move along the production possibilities frontier,

		the possibilities of tradeoffs diminish.
		the production of one good increases as the production of the other good decreases.
		more of both goods can be produced.
		a tradeoff is not possible because nations need all goods.

1 point

QUESTION 20

What is the opportunity cost of economic growth?

		Eliminate scarcity
		Land.
		Capital goods.
		Consumption of goods.

1 point

QUESTION 21

Which of the following statements is correct?

i.As the economy grows, the opportunity costs of economic growth decrease.

ii. Economic growth has no opportunity cost.

iii. The opportunity cost of economic growth is current consumption forgone.

		ii only
		iii only
		I only
		I and iii

1 point

QUESTION 22

Does economic growth depend upon which of the following?

i. Increasing the quantity of labor.

ii. Lowering the prices of goods and services.

iii. Advancing technology.

		ii only.
		I only.
		I and iii.
		iii only.

1 point

QUESTION 23

When drawing a production possibilities frontier, which of the following is held constant?

		the amount of money in the economy
		the prices of goods and services
		the quantity of the goods and services that are produced
		the available factors of production and the state of technology

1 point

QUESTION 24

To increase its economic growth, a nation should

		encourage spending on goods and services.
		increase in current consumption.
		encourage education because that increases the quality of labor.
		limit the number of people in college because they produce nothing.

1 point

QUESTION 25

The opportunity cost of one more slice of pizza in terms of sodas is the

		some pizza slices we have to give up to get one extra soda.
		the total number of sodas that we have divided by the total number of pizza slices that we have.
		the total number of pizza slices that we have divided by the total number of sodas that we have.
		the number of sodas we have to give up to get one extra pizza slice.

jadecrow966

The opportunity cost of one more slice of pizza in terms of sodas is the

		the total number of pizza slices that we have divided by the total number of sodas that we have.
		the number of sodas we have to give up to get one extra pizza slice.
		the number of pizza slices we have to give up to get one extra soda.
		the total number of sodas that we have divided by the total number of pizza slices that we have.

1 point

QUESTION 2

A production possibilities frontier shows

		how money can be allocated among two kinds of goods.
		the limits to the future growth of a nation.
		the various combinations of output a nation can produce at a certain time, given its available resources and technology.
		that if the price of one good decreases, the price of the other has to increase.

1 point

QUESTION 3

When a production possibilities frontier is bowed outward, as more of one good is produced, its opportunity cost

		remains constant.
		might increase, decrease, or remain constant depending on how much people value the additional units of the good.
		increases.
		decreases.

1 point

QUESTION 4

When all of the available factors of production are being efficiently employed, the

		the economy is producing at a point within its PPF.
		PPF disappears.
		the economy is producing at a point beyond its PPF.
		the economy is producing at a point on its PPF.

1 point

QUESTION 5

If a nation devotes a larger share of its current production to consumer goods, then

		its PPF will shift inward.
		its economic growth will slow down.
		its PPF will shift outward.
		some productive factors will become unemployed.

1 point

QUESTION 6

A point on the production possibilities frontier reflects an

		the attainable point with full employment of all resources.
		attainable point without full employment of all resources.
		unattainable point without full employment of all resources.
		the unattainable point with full employment of all resources.

1 point

QUESTION 7

When drawing a production possibilities frontier, which of the following is held constant?

		the available factors of production and the state of technology
		the amount of money in the economy
		the prices of goods and services
		the quantity of the goods and services that are produced

1 point

QUESTION 8

As we move along the production possibilities frontier,

		more of both goods can be produced.
		the possibilities of tradeoffs diminish.
		a tradeoff is not possible because nations need all goods.
		the production of one good increases as the production of the other good decreases.

1 point

QUESTION 9

Which of the following is an assumption used when drawing a production possibilities frontier?

i.Human wants and desires are limited to what is available.

ii. Only two goods are considered.

iii. The level of technology is fixed and unchanging.

		I and iii
		ii only
		I, ii, and iii
		I only

1 point

QUESTION 10

To achieve gains from trade, a country

		needs to have an absolute advantage in the production of all goods.
		specializes in producing a good in which it has a lower opportunity cost.
		must produce at a point beyond its PPF.
		should produce at the midpoint of its PPF.

1 point

QUESTION 11

Relative to Al, Joe has ________ if Joe can produce a good at a lower opportunity cost than Al.

		a comparative advantage
		more production efficiency
		a marginal benefit
		a comparative benefit

1 point

QUESTION 12

Does economic growth depend upon which of the following?

i.Improving the quality of labor

ii. Technological advancement

iii. Increasing the amount of capital

		iii only
		ii only
		I only
		I, ii, and iii

1 point

QUESTION 13

In one hour John can produce 20 loaves of bread or 18 cakes. In one hour Phyllis can produce 30 loaves of bread or 15 cakes. Which of the following statements is true?

		John has a comparative advantage in producing cakes.
		Phyllis has an absolute advantage in both goods.
		Phyllis has a comparative advantage in producing cakes.
		John has an absolute advantage in both goods.

1 point

QUESTION 14

As an economy produces more of one of the goods on a bowed out production possibilities frontier, what happens to the opportunity cost of producing the good?

		It decreases.
		It might increase, decrease, or remain constant depending on how much people value the additional units of the good.
		It remains constant.
		It increases.

1 point

QUESTION 15

The production possibilities frontier illustrates the

		goods and services that people want.
		maximum combinations of goods and services that can be produced.
		resources the economy possesses, but not it is the level of technology.
		limits to people's wants.

1 point

QUESTION 16

The United States produced approximately ________ worth of goods and services in 2007.

		$14 billion
		$14 trillion
		$140 billion
		$140 trillion

1 point

QUESTION 17

The fact of increasing opportunity cost when moving on the PPF means that

		to increase the production of one product requires smaller and smaller sacrifices of the other good.
		to decrease the production of one product requires smaller and smaller sacrifices of the other good.
		to increase the production of one product requires larger and larger sacrifices of the other good.
		when the government forces a movement from one point on the PPF to another point, no production is lost.

1 point

QUESTION 18

Other things equal, if India devotes more resources to educate its population than China,

		China will grow faster than India.
		India will be able to eliminate scarcity faster than China.
		India will be able to eliminate opportunity cost faster than China.
		India will grow faster than China.

1 point

QUESTION 19

For Ireland to grow more potatoes, wool production must decrease. This situation is an example of

		zero opportunity cost.
		producing at a point that lies beyond the PPF.
		opportunity benefit.
		a tradeoff.

1 point

QUESTION 20

Moving from one point to another on a production possibilities frontier implies

		increasing the production of both goods.
		increasing the production of one good and decreasing the production of another.
		holding the production levels of both goods constant.
		decreasing the production of both goods.

1 point

QUESTION 21

The United States is one of the richest nations in the world,

		but it can still benefit from specialization and trade.
		so does not need to trade with poor nations to achieve any gains from trade.
		so might not have a comparative advantage in producing any goods.
		so it must have a comparative advantage in the production of all goods.

1 point

QUESTION 22

"Comparative advantage" is defined as a situation in which one person can produce

		more of all goods than another person.
		a good for a lower opportunity cost than another person.
		a good for a lower dollar cost than another person.
		more of a good than another person.

1 point

QUESTION 23

The idea of increasing opportunity cost is reflected in the

		the linear shape of the production possibilities frontier.
		bowed in the shape of the production possibilities frontier.
		bowed out the shape of the production possibilities frontier.
		the positive slope of the production possibilities frontier.

1 point

QUESTION 24

Suppose that after specializing according to comparative advantage, a country is trading with another nation that also specializes according to its comparative advantage. Which of the following statements are true for the first country?

i)It enjoys gains from trade.

ii)It must have an absolute advantage in the production of the good it produces.

iii)It is producing at a point beyond its PPF.

		I only.
		I and ii.
		I and iii.
		ii and iii.

1 point

QUESTION 25

If society moves from a period of time with significant unemployment to a time with full employment, its production possibilities frontier will

		shift rightward.
		not shift because the society moves from one point on the frontier to a point inside the frontier.
		not shift because the society moves from a point inside the frontier to a point on the frontier.
		shift leftward.

1 point

ochresea-lion6

Q1. In the short run, an increase in the discount rate usually

a. causes the equilibrium level of real GDP and the price level to fall.

b. leads banks to hold fewer excess reserves.

c. leads to an increase in the price of existing bonds.

d. results in decreases in other interest rates.

Q2. Both Keynesians and monetarists agree that monetary policy works by shifting aggregate supply.

a. true

b. false

Q3. The effect of expansionary monetary policy is to

a. increase real output and decrease the price level.

b. decrease real output and increase the price level.

c. increase real output and increase the price level.

d. decrease real output and decrease the price level.

Q4. The price of bonds and the interest rate are

a. unrelated.

b. inversely related.

c. related, but we are not sure how.

d. positively related.

Q5. If the Fed increases the reserve requirement,

a. banks will issue more loans.

b. consumers will save more.

c. banks will issue fewer loans.

d. consumers will save less.

Q6. A central bank that engages in inflation targeting is following a monetary rule.

a. true

b. false

Q7. The Federal Reserve increased the money supply significantly during the Great Depression, but prices continued to fall anyway.

a. true

b. false

Q8. Keynesian theory argues that

a. decreases in the money supply lead to increases in the interest rate which increases investment which increases the level of real GDP.

b. increases in the money supply lead to decreases in the interest rate which increases investment which increases the level of real GDP.

c. increases in the money supply lead to decreases in the interest rate which decreases investment which decreases the level of real GDP.

d. increases in the money supply cause consumers to spend more which reduces the unemployment rate and therefore increases real GDP.

Q9. The effect of contractionary monetary policy is to

a. decrease real output and increase the price level.

b. increase real output and decrease the price level.

c. increase real output and increase the price level.

d. decrease real output and decrease the price level.

Q10. Keynesian economists believe that monetary policy works through its effect on

a. long-run aggregate supply.

b. the interest rate.

c. consumer confidence.

d. the federal budget deficit.

Q11. An expansionary monetary policy results in lower interest rates, which in turn

a. lead to higher rates of taxation.

b. cause firms to invest more.

c. lead to lower bond prices.

d. cause consumers to save more.

Q12. Contractionary monetary policy is used to combat recessions.

a. true

b. false

Q13. Economic growth can also be defined as the cumulative contribution of the rate of growth of capital, the rate of growth of labor, and the rates of growth of capital and labor productivity.

a. true

b. false

Q14. Small differences in the annual growth rate of a country add up to large differences over time because of compounding.

a. true

b. false

Q15. Economic growth occurs when

a. there is an increase in the inflation rate.

b. there is an increase in the amount of capital.

c. there is an increase in the unemployment rate.

d. the production possibilities curve becomes flatter.

Q16. Which one of the following is TRUE?

a. Small changes in the annual growth rate amount to a measurable difference in the long-term growth trend of a country.

b. For every country that experiences an increase in its growth rate, there must be another experiencing a decline.

c. A well-defined system of property rights benefits only the wealthy, and consequently it produces income inequality that will stifle economic growth.

d. Restricting imports will enhance a country's economic growth.

Q17. Economic growth is reflected in

growth in total output.

b. an increase in tax revenue.

c. increases in the level of employment.

d. increase in per capita real GDP.

Q18. Economic growth is reflected in the production possibilities curve becoming flatter.

a. true

b. false

Q19. Research has shown that the growth of developing countries is most strongly enhanced by

a. providing a good secondary education.

b. increasing the money supply.

c. providing incentives to have large families.

d. providing colleges and universities.

Q20. Which of the following is the most important factor affecting economic growth?

a. the rate of interest

b. the exchange rate

c. the price level

d. the rate of saving

Q21. Secondary schooling makes measurable contributions to economic growth in developing countries.

a. true

b. false

Q22. Poorly defined property rights inhibit economic growth.

a. true

b. false

Q23. Which one of the following helps preserve incentives to develop new technologies?

a. tariffs

b. income taxes

c. patents

d. quantity restrictions on imports

Q24. Studies indicate that

a. there is no relationship between economic growth and saving.

b. there is a negative relationship between economic growth and saving.

c. there is a positive relationship between economic growth and saving.

d. saving does not contribute to capital formation.

Q25. The European Union is

a. an organization established to resolve trade disputes among member nations.

b. a group of countries that impose tariffs on one another's agricultural goods.

c. a restricted trade zone.

d. a common market.

Q26. Which one of the following is FALSE?

a. Trade of goods facilitates the exchange of intellectual property as well.

b. The end result of trade is that richer countries take advantage of poorer ones.

c. A country enjoys an absolute advantage if it can produce a good with fewer resources than any other country can.

d. Countries that engage in trade will end up specializing according to their own comparative advantage.

Q27. If there are two goods and two countries, then one country can have

a. an absolute advantage in both goods but a comparative advantage in only one good.

b. an absolute advantage in both goods and a comparative advantage in both goods.

c. an absolute advantage in neither good and a comparative advantage in both goods.

d. an absolute advantage in one good, an absolute disadvantage in the other good, and a comparative advantage in neither.

Q28. An infant industry is one in which

a. the firms are too new and too small to compete internationally.

b. no country has a comparative advantage.

c. no country has an absolute advantage.

d. the products are only consumed domestically.

Q29. The European Union is an example of a common market.

a. true

b. false

Q30. An import quota will make the supply curve for the imported good

a. unitary elastic.

b. negatively sloped.

c. perfectly elastic.

d. perfectly inelastic.

Q31. If the infant-industry argument is used to protect an industry that has already matured then

a. consumers lose because they pay a price for a product which is below the world price.

b. consumers lose because they pay a price for a product which is above the world price.

c. no one loses.

d. stockholders lose because the firm cannot compete with other firms.

Q32. Protection should be withdrawn from an infant-industry when the companies in the industry

a. reach a sufficient size to compete with foreign firms.

b. become profitable.

c. are listed on the domestic stock exchange.

d. double their sales revenues.

Q33. Which of the following is a true statement?

a. Exporters benefit from trade and importers do not.

b. Free trade harms domestic producers of goods that face import competition.

c. Consumers benefit from trade and producers do not.

d. Everyone benefits from free trade in the short run.

Q34. In the United States today, imports are over

a. 22 percent of GDP.

b. 26 percent of GDP.

c. 14 percent of GDP.

d. 18 percent of GDP.

Q35. Table 16.6

Product Country X Country Y

Gallons of Ice Cream 2,000 1,000

Yards of Textiles 6,000 2,000

Table 16.6 shows the combinations of quantities of two goods, gallons of ice cream and yards of textiles, that can be produced with all of the resources available in two countries, X and Y.

Refer to Table 16.6. Which of the following statements is TRUE?

a. Country X has a lower opportunity cost of producing ice cream than does Country Y.

b. Country Y has a comparative advantage in producing textiles.

c. Country X has a comparative advantage in producing ice cream.

d. In Country X, the opportunity cost of producing a gallon of ice cream is three yards of textiles.

Q36. Table 16.1

Alpha's Production Possibilities

A B C D E

Cookies 4 3 2 1 0

Coffee 0 5 10 15 20

Beta's Production Possibilities

A B C D E

Cookies 8 6 4 2 0

Coffee 0 6 12 18 24

Table 16.1 shows the quantities of cookies and coffee that can be produced with the full amount of resources available in each of two countries, Alpha and Beta.

Refer to Table 16.1. The table shows the production possibilities of cookies and coffee in Alpha and Beta measured in tons. In Alpha the domestic cost of 1 ton of cookies

a. is 5 tons of coffee.

b. changes with the level of coffee production.

c. changes with the level of cookie production.

d. averages 4 tons of coffee.

Q37. Table 16.1

Alpha's Production Possibilities

A B C D E

Cookies 4 3 2 1 0

Coffee 0 5 10 15 20

Beta's Production Possibilities

A B C D E

Cookies 8 6 4 2 0

Coffee 0 6 12 18 24

Table 16.1 shows the quantities of cookies and coffee that can be produced with the full amount of resources available in each of two countries, Alpha and Beta.

Refer to Table 16.1. If these two countries, Alpha and Beta, specialize based on comparative advantage

a. Beta will specialize in producing both items.

b. Alpha will specialize in cookies, and Beta will specialize in coffee production.

c. Alpha will specialize in coffee, and Beta will specialize in cookies.

d. Alpha will specialize in producing both items.

Q38. A country is made richer by its exports and poorer by its imports.

a. true

b. false

Q39. The demand for Japanese yen will increase when

a. Japan becomes more productive relative to the United States.

b. Americans change preferences in favor of domestically produced goods.

c. America is perceived as more stable politically and economically than Japan.

d. real interest rates in Japan fall.

Q40. If labor productivity improves in India relative to other countries,

a. the demand for the Indian rupee will decrease, leading to its appreciation.

b. the demand for the Indian rupee will decrease, leading to its depreciation.

c. the demand for the Indian rupee will increase, leading to its depreciation.

d. the demand for the Indian rupee will increase, leading to its appreciation.

Q41. Assume that there is an increased demand in the United States for Australian wines. If all other factors are held constant, this will result in

a. an appreciation of the Australian dollar.

b. a movement along the demand curve for Australian wine.

c. a decrease in the supply of U.S. dollars in the foreign exchange market.

d. an appreciation of the U.S. dollar.

Q42. Capital account transactions occur

a. when a U.S. citizen purchases stock in a U.S. corporation.

b. because of foreign investments.

c. when you move money from one U.S. bank to another U.S. bank.

d. when a U.S. company purchases goods from a foreign company.

Q43. When a country intervenes in foreign currency markets to maintain a fixed exchange rate

a. it is engaged in hedging.

b. it increases the foreign exchange risk faced by its citizens.

c. it does so by using its foreign exchange reserves.

d. it smoothes out fluctuations in the level of business activity.

Q44. An increase in the U.S. demand for Japanese yen causes

a. an increase in the dollar-price of yen.

b. an increase in the demand for U.S. goods.

c. an increase in the yen-price of dollars.

d. a decrease in the supply of yen.

Q45. Other factors held constant, a rise in the price level in Japan that exceeds the rise in the price level in other countries will most likely result in

a. a decrease in the supply of the Japanese yen.

b. an increase in the supply of Japanese goods.

c. a depreciation of the dollar.

d. a decline in the level of Japanese exports.

Q46. The fact that the United States has a trade deficit means that

a. U.S. workers cannot compete with workers overseas.

b. the United States has a surplus in its capital account.

c. interest rates in the United States are low compared to the world average.

d. the United States has a deficit in its capital account.

Q47. Which of the following statements is true about the role of gifts given to U.S. citizens from foreigners?

a. Gifts are only included in the balance of payments if the gift is over $1,000,000.

b. Gifts given to U.S. citizens are not included in the balance of payments, but gifts given to foreigners are included as deficit items.

c. Gifts are included in the balance of payments.

d. Gifts are not included in the balance of payments.

Q48. Every transaction concerning the exportation of American goods constitutes a

a. demand for foreign currency and a supply of dollars.

b. demand for dollars, with no effect on markets for foreign currencies.

c. supply of foreign currency, with no effect on the market for dollars.

d. supply of foreign currency and demand for dollars.

Q49. If the capital account is in surplus, the current account will be in deficit.

a. true

b. false

Q50. The balance of payments consists of the

a. capital account, official reserve transactions account, and recent account.

b. current account, official reserve transactions account, and monetary account.

c. current account, capital account, and official reserve transactions account.

d. current account, capital account, and gold flows.

ECON 1BB3 Chapter Notes - Chapter 8: Technological Change, R&S Records, Production Function

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