Tariffs, quotas, and exports subsidies all increase domestic production.
Answer the following statement true (T) or false (F)
True
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China began pegging its currency, the yuan, to the dollar in 1994
Because the yuan has been ________ at the pegged exchange rate, the Chinese government ________ its reserves of dollars as the government purchased more ________ to maintain the pegged exchange rate. A) undervalued; decreased; yuan B) overvalued; increased; yuan C) undervalued; increased; dollars D) overvalued; decreased; yuan
According to the Keynesian IS—LM model, what is the effect of each of the following on output, the real interest rate, employment, and the price level? Distinguish between the short run and the long run
(a) Expected inflation rises. (b) Wealth increases. (c) Labor supply decreases due to a change in demographics. (d) The future marginal product of capital decreases.
An extremely deep and long period of negative economic growth is most accurately called:
a) Deflation. b) Inflation. c) A recession. d) A depression.
During an economic boom:
A. the level of unemployment tends to be high. B. it is difficult for firms to recruit and retain workers. C. firms have an easier time purchasing raw materials. D. prices tend to decrease over time.