How were macroeconomic balances different in the period from 2000 to 2007 from past financial crises?
What will be an ideal response?
There was not an issue with devaluing exchange rates but rather the imbalances were between high saving, current account surplus nations and low savings, current account deficit nations which kept interest rates low and contributed to the housing bubble.
You might also like to view...
If the economy enters an expansion
A) cyclical unemployment increases. B) structural unemployment increases. C) cyclical unemployment decreases. D) structural unemployment decreases.
Nonactivists propose doing nothing in the face of economic hardship because ________
A) activist policies can kick in at the wrong time and be counterproductive B) "markets self-correct pretty rapidly anyway" C) in the face of high unemployment, activist policies would likely lead to surges in inflation D) all of the above E) none of the above
Assume that the U.S. labor force consists of 185 million workers and that 17.5 million are officially unemployed. Calculate the unemployment rate
a. 11.4 percent b. 10.0 percent c. 9.5 percent d. 7.5 percent e. 10.8 percent
Human capital is
A. the human resources that perform the function of raising capital. B. the value of funds that entrepreneurs obtained from other people. C. what people get from physical capital. D. the accumulation of skills, training and education of workers.