If an economy is stuck in a "bad" equilibrium in the coordination failure model
A) the government should intervene by spending more.
B) the government should intervene by spending less.
C) the government should promote optimism.
D) there is nothing that can be done.
C
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If two countries specialize in the production of goods in which they have a comparative advantage, they can experience gains from trade
Indicate whether the statement is true or false
Productivity gains in the United States since 1990 have been ________ productivity gains in other leading industrial nations
A) the same as B) higher than C) lower than D) more variable than
One aspect of bank accounting is that many liabilities of banks are
a. assets of other persons and businesses in the economy. b. also liabilities of other persons and businesses in the economy. c. not matched by liabilities of most other banks. d. not actually owed to any other person or business in the economy.
Regulation of a natural monopoly that forces it to price and produce as if it were a competitive firm results in
A) the market being instantly competitive. B) higher profits for the monopoly. C) economic losses for the monopoly. D) a highly unstable marketplace.