What problem does the government have that makes price regulation less than an ideal solution?
a. There is no effective way to enforce price regulation.
b. The government cannot tell what price a firm is charging.
c. Regulators frequently will not have the information they need to set prices.
d. Regulation often will lead to lower costs.
C
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Japanese electronics exports were hurt in 2008 as a result of the recession. How would this decrease in exports have affected Japan's aggregate demand curve?
A) The aggregate demand curve would not have shifted, but there would have been a movement down the aggregate demand curve. B) The aggregate demand curve would have shifted to the right. C) The aggregate demand curve would not have shifted, but there would have been a movement up the aggregate demand curve. D) The aggregate demand curve would have shifted to the left.
Which of the following statements is incorrect with respect to the balance of payments?
a. It constitutes a record of transactions between residents within one country. b. It consists of a current account, a capital account, and an account to record omissions and errors. c. Transactions that result in a demand for domestic currency are always entered as a credit. d. It must balance in the aggregate, but separate accounts can show deficits or surpluses. e. It constitutes a record of a country's trade in goods and services and financial assets.
If a U.S. dollar currently purchases 1.3 Canadian dollars and the inflation rate in Canada over the next year is 5 percent while it is 2 percent in the U.S., we should expect a U.S. dollar to purchase:
A. 1.365 Canadian dollars. B. 1.300 Canadian dollars. C. 1.339 Canadian dollars. D. 1.262 Canadian dollars.
Structural budget surplus is the hypothetical surplus we would have under current fiscal policies if the economy were operating near full employment.
Answer the following statement true (T) or false (F)