Beginning in 1971, the Nixon administration enacted a series of price controls in hopes of reducing inflation. The first of these, known as Phase I,
a. consisted of a price freeze.
b. imposed a ceiling price on meat, but left other prices unregulated.
c. froze wages, but left other prices unregulated.
d. applied only to oil prices.
a. consisted of a price freeze.
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Fixed exchange rate regimes
A) existed prior to the nineteenth century but were then superseded by the gold standard. B) lower the transactions costs of buying and selling goods and assets. C) result in higher world interest rates. D) were first established by the GATT in 1971.
A change in the output gap is likely to lead to ________
A) a change in inflation B) a change in expected inflation C) a shift of the short-run aggregate supply curve D) all of the above E) none of the above
According to the search model, a computerized used car search service should
a. reduce the amount of search b. not affect the amount of search c. increase price dispersion d. reduce price dispersion e. lower the marginal benefit of search
Which of the following statements best describes the expected pattern of trade imbalances?
a. The expected pattern of trade imbalances in the world economy has been that low-income economies will run trade surpluses, while middle and high-income economies will run trade deficits. b. The expected pattern of trade imbalances in the world economy has been that low and middle-income economies will run trade surpluses, while high-income economies will run trade deficits. c. The expected pattern of trade imbalances in the world economy has been that high-income economies will run trade surpluses, while low- and middle-income economies will run trade deficits. d. The expected pattern of trade imbalances in the world economy has been that low and high-income economies will run trade surpluses, while middle-income economies will run trade deficits.