A Home PagelI St. Petersburg Student Login- One SPC mc Chapter 24 Quiz Ecoi myco

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A Home PagelI St. Petersburg Student Login- One SPC mc Chapter 24 Quiz Ecoi mycourses.spcollege edu ?Googlest wels Fargo ?Suntrust" Vanguard ALLymi AmEx-SocSec?PNCSF1ghtAndretm Ticketmaster- RaysFBS Lions Rockets Rebecca Majoros&I; 6/15/18 3:11 PM ECO2013 Principles of Macroeconomics Mode:(Online) Classl:1255 Instructor Kumari Quiz This Question: 1 pt Submit Quiz : Chapter 24 Quiz Pievius Quetion This Quiz: 10 pts possible 9 of 10 (6 complete) NITC bridge project Canada is the United States largest trading partner and 25 percent of the goods trade crosses the Detroit River. The NITC bridge, costing $ reduce trafic bottlenecks and improve opportunities for businesses in both countries by providing a state-of-the-art, publidy operated border crossing Source: CNN, June 28, 2013 This huge project will This huge project vwill Canada but have no effect on the demand for OA. not shift the U.S production function but will create a movement up along O A increase the supply of labor in O B. increase the demand for labor and the supply of labor in Canada, and the production function increase the demand for labor and the supply of labor in the United States labor B. O C. D and increase potential GDP have no effect on US potential GDP increase the supply of labor in the United States but have no effect on the increase potential GOP have no effect on Canada's potential GDP shit Canada s production function upward create a movement up along the production function as the full-employment quantity of labor increases, and O C. 0 D. demand for labor increase potential GDP O E. shilft the U.S production function upward, create a movement up along the E. not shift Canada's production function but will create a movement up along production function as the full-employment quantity of labor increases, and ncrease potential GDP the production function Click to select your answer o search

Explanation / Answer

The huge project will equally benefit both the trading partners. The project is a permanent change in opportunity and not seasonal. Thus, it will cause a shift in production function in both the countries, an upward movement (that is, an increase in output) and increase in production will increase the GDP in both countries.

Along with opportunities, the labour force will face a higher demand and a flourishing market will see a higher supply of labour. And the full employment level of labour employment increases.

Correct answer

- (1) option D. shift Canada's production function upward, create a movement up along the production function as the full employment quantity of labor increases, and increase potential GDP.

- (2) option E. shift U.S. production function upward, create a movement up along the production function as the full employment quantity of labor increases, and increase potential GDP.

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