The United States, as it began its long and successful growth in the early 19th century, consciously promoted domestic production through such activities as tariffs, Clay's American System, and many direct subsidies to railroads, canal companies,
farmers (free land) etc. Today we view this blatant example of large scale and extensive import-substitution industrialization as having been very successful. Comment on this.
This is an interesting point and emphasizes that economic models tend to be a-historical. That is, they lack the historic perspective; and thus may be misleading as guides to long run issues, such as economic growth. This also suggests that trade policy per se is almost certainly not sufficient to explain why some countries grow and others do not.
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When you use currency to buy lunch, money is performing which function?
A) store of value B) medium of exchange C) barter token D) unit of purchase E) unit of currency
When the Chinese government buys U.S. government bonds, from the perspective of China, this is a(n):
A. export. B. import. C. capital outflow. D. capital inflow.
The inside lag is the:
a. time between a shock to the economy and the policy action responding to that shock. b. time between a policy action and its influence on the economy. c. time between a shock to the economy and the influence on the economy of a policy action. d. difference between the time it takes to implement monetary policy and the time it takes to implement fiscal policy.
When resources are not allocated efficiently, we have ______________.
Fill in the blank(s) with the appropriate word(s).