When the government enacts fiscal policy, it:
A. may not always be able to improve matters.
B. might make things worse.
C. can bring the economy to its long-run equilibrium more quickly than it can correct itself.
D. All of these are true.
D. All of these are true.
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If American demand for purchases of Mexican goods has increased, how would you expect the equilibrium exchange rate in the market for dollars to respond? Support your answer graphically
What will be an ideal response?
Exhibit 6-16 Long-run average cost curves
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In Exhibit 6-16, which firm's long-run average cost curve experiences constant returns to scale between 2 and 5 units?
A. Firm A. B. Firm B. C. Firm C. D. Firms A and C.
Falling output, in the short run, could be due to:
A. an increase in short-run aggregate supply. B. a reduction in aggregate demand. C. an increase in long-run aggregate supply. D. an increase in aggregate demand.
Which of the following criticisms is NOT directed at the IMF?
A) It lacks openness in its decision-making process. B) It serves the interests of wealthier countries. C) It creates a free-riding problem. D) It violates national sovereignty.