Despite the monetary expansion of the 1992–2000 period, the inflation rate
A. rose due to adverse supply shocks.
B. rose due to large increases in aggregate demand.
C. fell despite adverse supply shocks.
D. fell due to favorable supply shocks.
Answer: D
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The General Agreement on Tariffs and Trade forms the legal and institutional foundation for the current multilateral trading system
a. True b. False
Which of the following is not a benefit of decentralization?
A. Possibility to increase motivation and productivity B. Effective use of local knowledge C. Possibility to shirk and enjoy credits from free riding D. Conservation of management time
President George W. Bush, who favored a smaller government sector,
A. believed we should increase G to eliminate a recessionary gap. B. believed we should raise taxes to eliminate an inflationary gap. C. favored an active fiscal policy just as well as those who favor a larger government sector. D. argued against the use of an active fiscal policy.
In monopolistically competitive markets, entry barriers:
A) do not exist. B) are more prevalent than in perfectly competitive markets but less than in monopoly markets. C) are more prevalent than in monopoly markets but less than in perfectly competitive markets. D) are blocked.