1. Explain why inflation was falling in 2009 and how excessive stimulus could bring inflation in the long term. 2. What does it mean to say that inflation expectations are within the Fed’s target...

bring inflation in the long term. 2. What does it mean to say that inflation expectations are within the Fed’s target levels?

3. Which country has a comparative advantage in producing shoes? With international

trade, explain which country would export shoes and how the price of shoes in the importing country and the quantity produced by the importing country would change. Explain which country gains from this trade.