Devastating damage resulting from a major earthquake and tsunami will most likely
A) initially move a country to a time path beneath its balanced growth path.
B) move a country to a lower point on its balanced growth path.
C) shift the balanced growth path for a country to a new, lower level.
D) have little to no impact on the short-term growth rate in a country.
A
You might also like to view...
When the price level rises, the number of dollars needed to buy a representative basket of goods
a. increases, and so the value of money rises. b. increases, and so the value of money falls. c. decreases, and so the value of money rises. d. decreases, and so the value of money falls
A natural monopoly occurs when the? long-run average cost curve lies entirely above the demand curve of the typical firm in a? two-firm market.
A natural monopoly occurs when the? long-run average cost curve lies entirely
the demand curve of the typical firm in a? two-firm market.
Ceteris paribus, with a fixed exchange rate, if Americans decide to buy more Japanese-made television sets, this causes a market ________ of Japanese currency and creates a balance-of-payments ________ for the United States.
A. shortage; surplus B. surplus; surplus C. surplus; deficit D. shortage; deficit
Although macroeconomics textbooks have taught the logic of fiscal policy for over half a century, actual use of discretionary fiscal policy has been rare. When President George W. Bush persuaded Congress to enact a large tax cut early in his presidency, it was the first time in several decades that the fiscal policy rationale was taken seriously. Why has fiscal policy been used so infrequently?
A. The political processes of democracy make timely fiscal policy difficult. B. It has inherent conflicts with monetary policy. C. Fiscal policy has proven to be too strong a medicine for the small economic fluctuations we have had. D. Concern about exchange-rate stabilization has limited its effectiveness.