Strategic complementarities may help explain business cycles because such complementarities may lead to
A) decreasing returns to scale.
B) constant returns to scale.
C) increasing returns to scale.
D) a downward-sloping labor supply curve.
C
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If the Fed wants to reduce the value of the dollar, it will
A) sell foreign assets and buy dollars. B) sell dollars and buy foreign assets. C) buy foreign assets and also buy dollars. D) sell foreign assets and also sell dollars.
One thing that did not happen in the former Soviet Union was
a. widespread corruption b. a lack of faith in formal institutions c. workers bribing officials to get good jobs d. consumers paying fair market prices to get desired products e. prices not being allowed to allocate resources efficiently
Which component of the quantity equation is assumed constant by the quantity theory of money?
A. the money supply B. the velocity of money C. the level of income D. the price level
In the short term, a decrease in taxes will have what effect on GDP and unemployment?
A. It will reduce unemployment and reduce GDP. B. It will raise unemployment and reduce GDP. C. It will reduce unemployment and raise GDP. D. It will raise unemployment and raise GDP.