Ch. 10 Questions:

1. Explain Comparative Advantage in my own words. (2 pts)

2. Suppose you order some specialty cheeses from the Netherlands. The European-U.S. exchange rate is 0.75 = $1. The cheese costs 900. What is the price in dollars? (3 pts)

3. Explain the difference between floating exchange rates and fixed exchange rates. (2 pts)

Ch. 11 Questions

1. What is a demand-side policy? Please provide examples. (2 pts)

2. What economic trade-off is demonstrated by the Phillips Curve? (2 pts)

3. What is meant by stagflation and why is it bad? (2 pts)

4. Explain rational expectations in my own words. (2 pts)