Mainstream economists think that:
A. Market participants change their actions in response to anticipated price-level changes such that no change in real output occurs
B. The economy self-corrects when unanticipated events divert it from its full-employment level of real output
C. The downward inflexibility of wages and prices may leave the economy stuck in a costly recession for long periods
D. Significant changes in technology and resource availability cause macroeconomic instability
C. The downward inflexibility of wages and prices may leave the economy stuck in a costly recession for long periods
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When Mexico's exchange rate depreciated dramatically in 1994,
a. American exports to Mexico increased b. American exports to Mexico declined c. Mexican tourism to the U.S. increased d. American tourism to Mexico decreased e. Mexicans received more dollars for their peso
A professional baseball game is
a. rival and exclusive, and therefore is a public good b. rival and exclusive, and therefore is a private good c. exclusive, but since it is nonrival, it is a public good d. nonrival and nonexclusive, and therefore is a public good e. nonrival and nonexclusive, and therefore is a private good
In the liquidity trap, the demand curve for investment is horizontal
Indicate whether the statement is true or false
If the current number of participating countries in the Euro system is nineteen as of 2017 and the number of large countries is four (Germany, France, Italy, and Spain), are policies likely to favor small or large countries? Explain.
What will be an ideal response?