45. Describe cost-push inflation in the long-run aggregate demand-aggregate supply model. Explain the policy dilemma for government policy if no action is taken and if monetary and fiscal policies are used to counter the cost-push inflation. Assume that the economy is initially at the full-employment level of real GDP.

46. If the long-run supply curve is fixed in place, can there be persistent inflation?

47. In what ways are national economies linked?

48. How important is international trade for Canada?

49. What are Canada's top four exports and imports?

50. Why has international trade grown rapidly since World War II?

51. Cite three important reasons why nations trade.

52. "The international flow of goods helps compensate for the international immobility of resources." Analyze and explain.

53. What are the economic benefits of free trade?

54. How can supply and demand analysis be used to explain the equilibrium price and quantity of exports and imports for aluminum when there is trade between two nations (e.g., the United States and Canada)?