Realizing the problems with import substitution, some Asian countries have instead:
A. supported export-led growth.
B. become isolationist, like North Korea.
C. practiced contractionary monetary policy.
D. worked to maintain a fixed exchange rate.
A. supported export-led growth.
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If potential output exceeds actual output, ________ shifts downward over time
A) the short-run AD curve B) the long-run AD curve C) the long-run AS curve D) the short-run AS curve
A falling price level in conjunction with rising output would be evidence in favor of which model?
a. Keynesian model. b. monetarist model. c. real business cycle model. d. a and b. e. none of the above.
A rain barrel is a container that captures and stores rainwater for landscape and garden use during dry periods. Rain barrels provide an external benefit to the community through water conservation. If the government offers a per unit subsidy on rain barrels equal to the per-unit externality, then
a. the after-subsidy equilibrium quantity of rain barrels will be less than the socially optimal quantity of rain barrels. b. the after-subsidy equilibrium quantity of rain barrels will be more than the socially optimal quantity of rain barrels. c. the after-subsidy equilibrium quantity of rain barrels will equal the socially optimal quantity of rain barrels. d. market incentives will be distorted and move the allocation of resources away from the social optimum.
Economic growth is difficult for poor countries because
A. governments must fund capital production and research out of tax revenues. B. resources must be taken away from consumer goods to pay for capital goods. C. those wealthy enough to invest in domestic industries may choose to invest abroad instead. D. All of the choices are true.