In principle, trade can make a nation better off, because the gains to the winners exceed the losses to the losers
a. True
b. False
Indicate whether the statement is true or false
True
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Gross Domestic Product (GDP) is defined as the market value of all goods and services purchased in the economy during a particular year
Indicate whether the statement is true or false
Economists generally agree that in the long run changes in aggregate demand affect
A) aggregate output but not the price level. B) the price level but not aggregate output. C) both the price level and aggregate output. D) neither the price level nor aggregate output.
Assume that the central bank sells government securities in the open market. If the nation has highly mobile international capital markets and a fixed exchange rate system, what happens to the real risk-free interest rate and reserve-related (central bank) transactions in the context of the Three-Sector-Model? State your answer after the macroeconomic system returns to complete equilibrium
a. The real risk-free interest rate falls and reserve-related (central bank) transactions becomes more negative (or less positive). b. The real risk-free interest rate remains the same and reserve-related (central bank) transactions becomes more negative (or less positive). c. The real risk-free interest rate and reserve-related (central bank) transactions remain the same. d. The real risk-free interest rate rises and reserve-related (central bank) transactions remains the same. e. There is not enough information to determine what happens to these two macroeconomic variables.
Several reform options have been discussed by Congress to solve some of the structural problems that plague the program. Which of the following options has received little support?
a. Instead of the current open-ended structure of the program, provide premium support directly to individuals allowing them to purchase the plan of their choice. b. To simplify the benefit structure, roll Parts A, B, and D into one plan with one deductible and uniform coinsurance rates. c. Limit the coverage for end-of-life care, the most expensive single item in Medicare, to include only essential palliative care. d. Place limits on the purchase of complementary Medigap insurance that provides first-dollar coverage to pay deductibles and coinsurance. e. Raise the eligibility age gradually much like the changes that were made to Social Security eligibility.