The balance of payments is the domestic price of a foreign currency.
Answer the following statement true (T) or false (F)
False
The exchange rate is the domestic price of a foreign currency.
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Unemployment caused by the normal labor turnover is called ________ unemployment
A) part-time B) frictional C) involuntary D) cyclical
Successful activist stabilization policy presumes that
A) the timing of policy impacts on nominal GNP are known. B) the magnitude, size of impacts, are known. C) the timing and magnitude of the impact of AD disturbances are known, forecasted with precision. D) All of the above.
Madison is a third-grade public school teacher who doesn't own a car and uses public transportation. According to public choice theory, which of the following four politicians for a public office would Madison be most likely to vote for in the upcoming election?
a. Politician A proposes increasing the property tax on personal automobiles and using the money to increase teacher salaries by 10 percent. b. Politician B proposes an across-the-board increase in state income tax rates and using the money to increase the benefits paid to unemployed workers. c. Politician C proposes increasing the property tax on personal automobiles and using the money to increase the benefits paid to unemployed workers. d. Politician D proposes an across-the-board increase in state income tax rates and using the money to improve the highway system.
Suppose that sharply lower coffee prices lead to a decrease in the demand for tea. Tea price decreases, and the tea producers experience short-run economic losses. If the tea industry is a price-taker market, after sufficient time is allowed for the market to adjust fully to the decrease in the demand for tea, one would expect the tea industry's output to
a. increase and economic losses to persist. b. decline and economic losses to persist. c. decline and economic losses to disappear. d. increase and economic losses to disappear