According to the structural stagnation hypothesis, structural stagnation has only short-run causes.
Answer the following statement true (T) or false (F)
False
Structural stagnation has both short-run and long-run causes. The long-run causes are related to exchange rates, globalization, and the trade deficit.
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Vault cash is part of a commercial bank's
A) demand deposits. B) capital. C) reserves. D) liabilities.
Market clearing prices in a market system act as
A) a signaling device. B) a direct measure of resource costs. C) a way for producers to advertise. D) a legally determined rationing device.
International trade policies are largely advocated, argued, and lobbied for based more on their distributional effects than on their aggregate or overall effects. What does this imply?
A) Producers will lobby for protectionism even though they may know that their gains from protectionism will be outweighed by the losses to consumers. B) Consumers care more about how policies affect them than how policies affect them and everyone else, too. C) Tariffs are more effective than quotas. D) Consumers' surplus will rise (when it rises) more than producers' surplus will fall (when it falls). E) none of the above
A monopoly has two production plants with cost functions C1 = 40 + 0.2Q12 and C2 = 50 + 0.1Q22. The demand it faces is Q = 480 ? 5P. What is the profit-maximizing price?
A. $40 per unit B. $50 per unit C. $45 per unit D. $60 per unit