The short-run effects of an increase in the expected price level include a. a lower level of output and a lower price level. b.
1 answer:
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Answer:
2 and 4
Explanation:
Japanese worker can produce 6 units of steel or 3 televisions per hour.
Korean worker can produce 8 units of steel or 2 televisions per hour.
Opportunity cost is the cost of the lost alternative. So when the country decides to produce only televisions it has to give up on steel production. Thus, the units of steel forgone for each unit of television gained is an opportunity cost of a television.
Thus,
Opportunity cost of television for Japan =
Opportunity cost of television for Korea =
