The Bretton Woods System of exchange rates was established:
a. to solidify support for the then-existing gold standard.
b. to peg the worldwide price of silver to the price of gold.
c. in Europe before World War II to establish a flexible exchange rate regime.
d. in the United States in 1944 to develop a gold exchange standard.
e. by a mechanism that made gold the reserve currency of the system.
d
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In the figure above, when income equals $20,000, what does consumption equal?
A) $0 B) $10,000 C) $20,000 D) impossible to tell
Society's production possibilities frontier
a. helps explain the immense complexity of the real economy b. demonstrates that, although resources are scarce for individuals, there is no problem of scarcity for society as a whole c. is based on unrealistic assumptions and therefore has no value as an economic tool d. is based on simplifying assumptions, but is still useful for illustrating scarcity, opportunity cost, and economic growth e. is based on the assumption that technology is constantly changing
With no change in fiscal policy, the budget
a. will run a surplus during a recession and a deficit during a boom. b. deficit will rise during a recession and fall during a boom. c. deficit will fall during a recession and rise during a boom. d. will remain unchanged by adverse economic conditions.
The government of Blenova considers two policies. Policy A would shift AD right by 500 units while policy B would shift AD right by 300 units. According to the short-run Phillips curve, policy A will lead
a. to a lower unemployment rate and a lower inflation rate than policy B. b. to a lower unemployment rate and a higher inflation rate than policy B. c. to a higher unemployment rate and lower inflation rate than policy B. d. to a higher unemployment rate and higher inflation rate than policy B.