If aggregate output is below the natural rate level, nonactivists of policies would recommend that the government
A) do nothing.
B) try to eliminate the high unemployment by attempting to shift the aggregate supply curve to the right.
C) try to eliminate the high unemployment by attempting to shift the aggregate demand curve to the right.
D) try to eliminate the high unemployment by attempting to shift the aggregate demand curve to the left.
A
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According to the above table, if per capita real GDP is currently $1000, then at a constant annual rate of growth of 8 percent, per capita real GDP ten years from now will be equal to
A) $2140. B) $2160. C) $2000. D) $2590.
If you invest in a foreign company by buying 8 percent of its shares of stock, you have engaged in
A) moral hazard. B) foreign direct investment. C) portfolio investment. D) adverse selection.
The allocative function of price cannot operate unless there is:
A. a significant barrier to entry. B. either free entry or free exit. C. both free entry and free exit. D. neither free entry no free exit.
The capital ratio is the ratio of a bank's
A) assets divided by its liabilities. B) income divided by its assets. C) capital divided by its assets. D) capital divided by its total liabilities.