The normal rate of unemployment around which the unemployment rate fluctuates is called cyclical unemployment
a. True
b. False
Indicate whether the statement is true or false
False
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What is the largest problem associated with using a tax to correct for an externality? Explain
What will be an ideal response?
GDP stagnated during the Obama presidency.
Answer the following statement true (T) or false (F)
When critics of U.S. farm policy say that it treats symptoms rather than causes, they mean that the:
A. policy attempts to bolster low farm income, while the real problem is an overallocation of resources to agriculture. B. policy deals with the overallocation of resources to agriculture, while the basic farm problem is low incomes. C. policy attempts to bolster low farm incomes, while the real problem is an underallocation of resources to agriculture. D. restriction of output in the short run may reduce productive capacity in agriculture in the long run.
Describe a situation in which a one-way speculative gamble would be possible and explain the effects that this type of speculation would have on a country trying to maintain its fixed exchange rate.
What will be an ideal response?