The main reason for the crisis in Argentina in 2001 and 2002, as to do with exchange rate policy, i.e., the continued peg of the exchange rate to the dollar. Discuss
What will be an ideal response?
Student should emphasize that the quote is mainly true. Students should compare Argentina in those years with the better experience of Chile and Mexico with flexible exchange rates and emphasize the appreciation of the dollar.
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Since 1980, the percentage of part-time workers who are part time for economic reasons
A) has steadily decreased. B) has steadily increased. C) at first increased, then generally decreased. D) generally increased in recessions and decreased in expansions. E) has remained approximately constant.
The exchange rate is kept the same across geographically-separate markets by
A) hedging. B) speculation. C) government regulation. D) arbitrage.
The size of the spending multiplier depends on the level of real GDP
a. True b. False Indicate whether the statement is true or false
The GDP deflator reflects the
a. level of prices in the base year relative to the current level of prices. b. current level of prices relative to the level of prices in the base year. c. level of real output in the base year relative to the current level of real output. d. current level of real output relative to the level of real output in the base year.