If a country's currency is "pegged" to the dollar, its exchange rate is
A) floating. B) flexible. C) undervalued. D) fixed.
D
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In the DMP model, a decrease in productivity
A) decreases the unemployment rate. B) reduces the vacancy rate. C) increases the unemployment rate. D) increases the size of the labor force.
How does the open-economy IS-MP model incorporate net exports with a floating exchange rate system?
What will be an ideal response?
During the Great Depression, union membership _____ due to _____
a. expanded, greater cooperation between radicals and conservatives in the labor movement. b. expanded, the passage of pro-union legislation. c. contracted, greater conflict between radicals and conservatives in the labor movement. d. contracted, people wouldn't risk losing their jobs by joining a union when unemployment was high.
Economists view pollution as an economic problem that arises because:
a. private enterprise always minimizes the amount of pollution produced. b. profitable firms rarely pollute. c. as the economy grows, the level of pollution declines. d. firms that pollute do not pay the full social cost of producing their output.