No government intervention in active markets for foreign currency is typical of a
A. gold standard.
B. floating exchange rate system.
C. fixed exchange rate system.
D. managed float exchange rate system.
Answer: B
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Changes in which of the following do NOT shift the AS curve? i. the price level ii. potential GDP iii. the money wage rate
A) i only B) ii only C) iii only D) i and ii E) i, ii, and iii
Unemployment compensation, by ________ layoffs at firms whose sales have declined, ________ the natural rate of unemployment
A) encouraging, raises B) encouraging, lowers C) discouraging, raises D) discouraging, lowers
Suppose you paid $500,000 for an asset. You hold the asset for five years. The interest rate that you get for the asset is 10%. Assume the tax rate on capital gains is 20%.
(A) If capital gains are taxed only when the asset is realized, how much will you have earned on the asset? (B) Suppose that capital gains are taxed annually instead of at realization. How much will you have earned on the asset? (C) How big is the difference in the two taxing schemes?
The business cycle is actually a continuous series of different __.
A. short-run macroeconomic equilibriums B. potential GDP values C. full-employment equilibriums D. nominal GPD vales