Foreign aid, royalties earned abroad, and long-term capital flows are part of the current account
a. True
b. False
Indicate whether the statement is true or false
False
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Use the following graph to answer the next question.
In the diagram, Qf is the full-employment output. If the economy's present aggregate demand curve is AD2,
A. the most appropriate fiscal policy is a reduction in government purchases or an increase of taxes. B. the most appropriate fiscal policy is an increase in government purchases or a reduction of taxes. C. the government should undertake neither an expansionary nor a contractionary fiscal policy. D. the economy is achieving its maximum possible output.
Use the following diagrams for the U.S. economy to answer the next question.
Which of the diagrams best portrays stagflation?
A. Graph A B. Graph B C. Graph C D. Graph D
Firms emerge when transaction costs of using the market are less than the cost of hierarchical control
a. True b. False
A durable good
A. is used up within 3 years. B. has a life span of more than 3 years. C. is an intangible commodity. D. has an infinite life span.