Suppose that Australia has fully employed all of its resources. This situation means that Australia
A) is experiencing zero unemployment.
B) has a positive Lucas Wedge.
C) has a negative Okun Ga
D) is operating at its potential GDP
D
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Under the price-specie-flow mechanism, what happens when, say, Germany's current account surplus is greater than its non-reserve capital account deficits?
A) German loans will finance all foreign net imports. B) Automatic drop in German domestic prices and rise in foreign prices. C) Gold reserves will flow into Germany. D) Gold reserves will flow out of Germany. E) Germany will experience a deficit.
Which of the three product has a unitary elastic demand curve?
a. Cigarettes b. Alcohol c. Sodas d. None of the above
Under a gold standard, if the market price of gold is above the official price of gold (set by the monetary authority) members of the public would likely buy gold _______________ and sell it __________________, causing the market price of gold to ____________________
A) from the monetary authority; in the gold market; fall B) from the monetary authority; in the gold market; rise C) in the gold market; to the monetary authority; fall D) in the gold market; to the monetary authority; rise
In the short run if price is below average variable cost the firm will
A. go out of business. B. stay in business. C. shut down. D. operate.