Two plausible hypotheses to explain the productivity slowdown are
A) measurement problems and adjustments to new technologies.
B) large government budget deficits and large balance of trade deficits.
C) globalization of capital markets and reductions in tariffs.
D) adjustments to new technologies and failures in the educational system.
A
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During the fiscal expansion associated with the Vietnam war, what type of expenditures was initially "crowded out?"
A) autonomous consumption B) nonresidential fixed investment C) residential construction D) nonresidential construction
Following the collapse of its housing and stock markets around 1990, the Japanese government ________
A) effectively managed the crisis, limiting the damage to the Japanese economy B) took only limited action in response to the crisis C) was able to rely on private initiatives in quickly reversing the course of GDP in the 1990s D) fixed the value of the yen to the Euro and pursued an aggressive monetary policy
If the price level increases by 2 percent each year, the inflation rate is increasing
a. True b. False Indicate whether the statement is true or false
According to the equation of exchange, economic logic would indicate that in order to avoid inflation, an increase in V must be accompanied by
A. an increase in spending by the government. B. an increase in imports. C. a decrease in the supply of money. D. a decrease in unemployment.