Figure 2-3
Which point in is not possible for this society to produce?
a.
A
b.
B
c.
C
d.
D
e.
E
e
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If currency depreciates,
A. net exports rise and the aggregate demand curve shifts inward. B. net exports rise and the aggregate demand curve shifts outward. C. net exports fall and the aggregate demand curve shifts inward. D. net exports fall and the aggregate demand curve shifts outward.
Some people believe that monetary policy should be made by rule rather than by discretion. One of their beliefs is that
a. setting a policy rule will limit the abuse of power of policymakers. b. policymakers can better influence the political business cycle in their favor when following a policy rule. c. a policy rule provides policymakers with the greatest flexibility to manage inflation. d. if the Fed was required to follow a low-inflation policy, the economy would face a less favorable short-run trade-off between inflation and unemployment.
One advantage of a sole proprietorship over a corporation is:
A. greater ability to obtain funds. B. ease of formation. C. limited liability. D. the ability to share work and risks.
Since the end of World War II,
A) world trade has grown more slowly than world GDP in the same time period. B) world trade has grown more slowly than during the years leading up to World War II. C) the trade-to-GDP ratios of most countries have fallen. D) world trade has grown more rapidly than world output.