One of the problems that monetary unions eliminate is
A. inflationary gaps.
B. recessionary gaps.
C. exchange rate instability.
D. business cycles.
Answer: C
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________ economists believe that the economy is self-regulating and will be at full employment as long as monetary policy is not erratic
A) Keynesian B) Monetarist C) Classical D) All
Should countries specialize in producing goods and services based on having a comparative advantage or an absolute advantage? Why?
What will be an ideal response?
In the circular-flow diagram, factors of production are the goods and services produced by firms
a. True b. False Indicate whether the statement is true or false
Specialization and exchange result in
a. lower production levels than would otherwise be possible b. higher living standards than would otherwise be possible c. more down-time as workers switch activities more frequently d. the assignment of workers to activities according to their preferences e. self-sufficiency