Refer to the graph shown. From 1929 to 1933 the money supply fell in the United States by 40 percent. The effect of this on the AD curve is best shown by a movement from:
A. A to B.
B. A to C.
C. A to D.
D. B to A.
Answer: C
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Which of the following compete to determine whether the current account improves or worsens following a rise in the real exchange rate?
A) appreciation and depreciation B) crowding Out effect and producers effect C) volume effect and value effect D) volume effect and inflation E) producers effect and value effect
The government uses two measures, _____________________________ regulations and ____________________________ regulations to curb pollution.
Fill in the blank(s) with the appropriate word(s).
One reason for increasing costs industries is that as an industry grows, it drives up the prices of inputs.
Answer the following statement true (T) or false (F)
One lesson to be drawn from our discussion of price ceilings and price floors is that
a. government intervention in the economy should be routine and extensive b. the government can easily solve most economic problems c. price ceilings work better than price floors d. in most cases, prices should be set by the interaction of demand and supply e. price controls work best if left in place over long periods