Free markets coordinate economic activity in such a way as to eliminate the possibility of inflation or unemployment
a. True
b. False
Indicate whether the statement is true or false
False
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Which of the following is a typical example of monopolistic competition?
a. a wheat farm b. a chain restaurant c. an apple orchard d. an herb grower
When countries have severe balance of payments difficulties caused by unsustainable current account deficits, they can approach the International Monetary Fund (IMF) for assistance. In providing financial assistance, the IMF generally insists that the country implement a series of policy changes designed to reduce the deficit. These programs are controversial as they tend to focus on demand reduction. Explain why demand reduction would solve a current account deficit problem. Would a program designed to increase the nation's gross domestic product (GDP) growth rate be a method of reducing a current account deficit? Why or why not?
What will be an ideal response?
What is PPP and how does it help us to make valid international comparisons of real GDP?
What will be an ideal response?
List and describe the sources of spending in the economy by focusing on the four major sectors of the economy
What will be an ideal response?