The study of economic growth focuses on the factors that cause an:
A. economy's production possibility curve to shift in.
B. economy's production possibility curve to shift out.
C. economy to move from a point inside its production possibility curve to a point on this curve.
D. economy to move along its production possibility curve.
Answer: B
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A lesson that policymakers should learn from the Argentinean experience with currency boards is:
A. they never work. B. poor fiscal policies can undermine any monetary policy regime. C. a flexible exchange rate is always preferred to a pegged exchange rate. D. the only fixed exchange rate that works is the gold standard.
How much is the output gap if short-run output is $18.0 trillion and potential output is $18.0 trillion?
What will be an ideal response?
The "Big Mac index" was created by The Economist magazine to determine
A. how successful the McDonald's corporation has been around the world. B. the accuracy of exchange rates. C. whether or not the dollar was overvalued or undervalued. D. None of these statements are true.
If the production possibilities curve is a downward sloping straight line, then
A) resources are highly specialized, making it difficult to use them for alternative uses. B) technological change has increased. C) production is efficient only when producing at the mid-point. D) all resources must be perfectly adaptable for alternative uses.