Keynesians prefer a disinflation policy of
A. stabilization.
B. cold turkey.
C. aggregate demand management.
D. gradualism.
Answer: D
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Suppose labor productivity differences are the only determinants of comparative advantage, and Brazil and Chile both produce only coffee and sugar. In Chile, either 5 units of coffee or 2 units of sugar can be produced in one day. In Brazil, a day of labor produces either 2 units of coffee or 1 unit of sugar. Which of the following statements is true?
a. Brazil has an absolute advantage in producing only coffee. b. Brazil has an absolute advantage in producing only sugar. c. Chile has an absolute advantage in the production of both coffee and sugar. d. Chile has an absolute advantage in producing only coffee. e. Brazil has an absolute advantage in the production of both coffee and sugar.
An increase in interest rate will ______ the quantity of money demanded for transactions and ______ the quantity of money demanded for speculation.
a) increase; increase b) increase; decrease c) decrease; increase d) decrease; decrease
Refer to the Article Summary. The article discusses the rising administrative costs of health care
Even if private insurance companies were more efficient and brought administrative costs down, consumers would still pay less than the full cost of medical treatment. This would result in the market equilibrium price of medical services being ________ than the efficient equilibrium price, and the market equilibrium quantity of medical services being ________ than the efficient equilibrium quantity. A) less; less B) greater; less C) less; greater D) greater; greater
Which of the following statements is (are) correct? During the existence of the Euro (1999-),
a. borrowing from abroad financed large excesses of merchandise imports over exports in the U.S. b. the United States has continued to be the world's largest debtor nation. c. the dollar initially appreciated but then depreciated strongly since 2001 against the euro. d. All of the above