The principal danger to Japan in 2001 when the yen was appreciating was that this would
a. increase aggregate demand and make inflation worse.
b. decrease aggregate demand and make the recession worse.
c. decrease aggregate demand and make inflation worse.
d. increase aggregate demand and make the recession worse.
b
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If the GDP price index is rising over a period of time, then the real GDP in years ________.
A. after the base year will be higher than the nominal GDP B. after the base year will be rising faster than the nominal GDP C. prior to the base year will be less than the nominal GDP D. prior to the base year will be larger than the nominal GDP
In the past the federal government often employed what is called a "command-and-control" approach to the reduction of pollution emissions. Many economists are critical of this approach because
A) they believe a market-based approach will reduce pollution more efficiently. B) it does not lead to significant reductions in pollution. C) the "command-and-control" approach leads to negative externalities. D) the "command-and-control" approach is designed to help firms at the expense of consumers.
Joshua Kohn worked 40 years assembling typewriters at Smith-Corona in Los Angeles, California. When the demand for typewriters fell because people switched to using computers, Josh and 500 others were laid off. He tried to find another job but the particular skills he had acquired at Smith-Corona were no longer useful. The unemployment Josh experienced was
a. cyclical b. structural c. permanent d. frictional e. voluntary
When the Fed wants US interest rates to decrease, it will usually increase the discount rate
a. true b. false