Market failure results in
A. inflation.
B. Pareto optimality.
C. waste.
D. budget deficits.
Answer: C
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According to this Application, lower oil prices may affect
A) aggregate supply. B) aggregate demand. C) both aggregate demand and aggregate supply D) neither aggregate demand and aggregate supply
A country with an official settlements balance of zero and a negative current account balance is a
A) net creditor. B) net lender. C) net borrower. D) net saver. E) None of the above answers is correct because it is not possible to have an official settlements balance of zero and a negative current account balance.
Discuss the effects of ongoing inflation based on the PPP theory
What will be an ideal response?
Keynesian policies are ineffective at combating stagflation because stagflation is caused by: a. budget surpluses
b. decreases in aggregate supply. c. trade deficits. d. decreases in aggregate demand. e. budget deficits.