Refer to the above figures. Which panel(s) represent the effect of an increase in the price level?
A) Panel A only
B) Panels A and C only
C) Panel D only
D) none of the panels
D
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How do the hierarchical and dual mandates differ in terms of macroeconomic consequences?
What will be an ideal response?
The notion of reciprocity means that one nation will impose import restrictions on another in order to:
a. stimulate an increase in trade restrictions in the latter. b. stimulate a decrease in trade restrictions in the latter. c. eliminate trade restrictions immediately in both countries. d. improve the government revenue collections through tariffs in both countries. e. enforce standards of product quality in the latter.
Assume that a perfectly competitive firm faces a fixed wage rate of $4 and a constant per-unit cost of capital of $2. If the marginal product of labor and capital are 16 and 6, respectively, then to maximize profits the firm should
A) use relatively more labor. B) use relatively less labor. C) increase all inputs proportionately. D) decrease all inputs proportionately.
A major criticism of foreign aid to developing nations is that it:
A. Is capital saving rather than capital intensive B. Provides incentives for a brain drain C. Encourages corruption and misuse of funds D. Gives too much power and control to the International Monetary Fund