Other things equal, an increase in the price level will Multiple Choice cause a movement up an aggregate supply curve. shift the aggregate supply curve to the right cause a movement down an aggregate supply curve, shift the aggregate supply curve to the left. A policy tool available to tame cost-push inflation is Multiple Choice to decrease personal tax rates but the problem with this it will likely cause higher levels of unemployment to increase aggregate demand but the problem with this is it will likely increase inflation and the unemployment rate simultaneously to increase personal taxes but the problem with this is it will likely cause demand pull inflation to reduce government spending but the problem with this is it will likely cause higher levels of unemployment Specialization is typically not complete because Multiple Choice nations frequently experience increasing opportunity costs when producing more of the product in which they are specializing nations frequently miss opportunity costs when producing more of the product in which they are specializing. production possibilities curves are straight lines rather than curves bowed outward as viewed from the origin. international law prohibits monopolies If two nations Multiple Choice each have straight-line production possibilities curves, then a product should be produced by the nation that has the absolute advantage. each have straight-line production possibilities curves, there will be a basis for mutually advantageous trade whether the slopes are equal or not. each have straight-line production possibilities curves, there will be a basis for mutually advantageous trade provided the slopes differ each have straight-line production possibilities curves, there will be a basis for mutually advantageous trade provided the slopes are equal