Wasted capital and labor resources are a problem associated with a(n) ________ gap. Increased inflation is a problem associated with a(n) ________ gap.
A. recessionary; recessionary
B. expansionary; expansionary
C. recessionary; expansionary
D. expansionary; recessionary
Answer: C
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The birth of the Euro
A) resulted in fixed exchange rates between all EMU member countries. B) resulted in flexible exchange rates between all EMU member countries. C) resulted in crawling-peg exchange rates between all EMU member countries. D) resulted in non currency board exchange rates between all EMU member countries. E) resulted in floating exchange rates between all EMU member countries.
Ranking assets from most liquid to least liquid, the correct order is
A) savings bonds; house; currency. B) currency; savings bonds; house. C) currency; house; savings bonds. D) house; savings bonds; currency.
In modern China contracts are largely enforced by:
a. plans b. the rule of law c. common law d. Roman law e. state and party officials
Suppose demand is perfectly elastic, and the supply of the good in question decreases. As a result,
a. the equilibrium quantity decreases, and the equilibrium price is unchanged. b. the equilibrium price increases, and the equilibrium quantity is unchanged. c. the equilibrium quantity and the equilibrium price both are unchanged. d. buyers' total expenditure on the good is unchanged.