the combination of price level and real output where aggregate demand = aggregate supply
What will be an ideal response?
macro-equillibrium
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Consider the two economies of Lithasia and Barylia. Economic agents in Lithasia have coordination and incentive problems, while in Barylia social surplus is maximized
Which economic system does each of these economies most likely have? Explain your answer.
Why are most of the U.S. dollars held outside of the United States?
What will be an ideal response?
Which of the following would not be predicted by the Hecksher-Ohlin theorem?
a) the US should export capital-intensive and technology-intensive goods b) India should export labor-intensive goods c) Canada should have a comparative advantage in forestry d) Kuwait should specialize in the production of oil e) Central African Republic should have a comparative advantage in fisheries
Which of the following is NOT a basis for the Taylor-rule guideline for how the Federal Reserve should set its target value for the federal funds rate?
A. the gap between actual real GDP and a measure of potential real GDP B. an estimated long-run real interest rate C. the current deviation of the actual inflation rate from the Fed's inflation objective D. the present deviation of the actual unemployment rate from the Fed's unemployment objective