During the Global Economic Crisis, low unemployment rate in Germany is attributed to the policy of
A) "work-sharing."
B) "money creation."
C) "99-ers."
D) "money powering."
A
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If a country has an overvaluation problem, the best solution is to
A) increase the official rate. B) buy less of its currency in the foreign exchange market. C) sell more of its currency in the foreign exchange market. D) decrease the money supply.
A restaurant offers an "all you can eat" meal for $9 . Tyrone has eaten three servings and is trying to decide whether or not to go back for a fourth. The economic way of thinking suggests that Tyrone should go back for the fourth serving if and only if
a. his marginal benefit of the additional serving is greater than zero. b. his marginal benefit of the additional serving is at least $3. c. his marginal benefit of the additional serving is $9 or more. d. his total value from the meal exceeds $9.
One reason economists have begun focusing on the Personal Consumption Expenditure measure for inflation is that the PCE deflator:
A. allows for a changing basket of goods. B. weights food more because food is a rising percent of expenditures. C. includes the price of assets such as stock portfolios. D. takes the exchange rate value of the dollar into account.
Assume the graph shown represents the market for pizzas sold in an hour. If the original equilibrium was D and S1. Which of the following is true when S1 shifted to S2?
A. Equilibrium price increased by $5. B. Equilibrium quantity increased by 20. C. Equilibrium quantity increased by 30. D. Equilibrium price decreased by $5.