The intersection of GG and LL determines
A) the optimal level of integration desired by Norway.
B) the maximum integration level desired by Norway.
C) the minimum level of integration that will cause Norway to join the fixed exchange rate regime.
D) the maximum level of integration that will cause Norway to join the fixed exchange rate regime.
E) the maximum level of integration that can aid Norway if it joins the fixed exchange rate regime.
C
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Using the simple Keynesian model, consider the case where taxes are lump-sum. Compared to the model without taxes, the investment multiplier in this model will
a. not change. b. be larger. c. be smaller. d. be equal to 1
Who are the only ones not affected by a Pigouvian tax when a negative externality exists in a market?
A. Producers B. Consumers C. Those affected by the externality D. All of these groups are affected when it becomes internalized.
Necessities such as food and shelter have inelastic demand
a. True b. False Indicate whether the statement is true or false
The introduction of a union into an industry creates a
a. surplus of labor and so raises unemployment. b. surplus of labor and so reduces unemployment. c. shortage of labor and so raises unemployment. d. shortage of labor and so reduces unemployment.