Under the gold standard,
a. no nation had control of its domestic monetary policy, and therefore no nation could control its aggregate demand.
b. the world's commerce was at the mercy of gold discoveries.
c. discoveries of gold meant higher prices in the long run and higher real economic activity in the short run.
d. All of the above are correct.
d
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The original reasons for founding the colony of Georgia do not include:
a. alleviating London of some of its poorer people. b. being a partial remedy to the injustice of debtor prisons. c. providing a buffer between the English and Spanish colonies. d. being a scheme to take advantage of desperate families.
Suppose the economy was in equilibrium, and the national government increased spending by $200 billion. Monetarist theory would predict that the main factor that will readjust the economy is the:
a. Real risk-free interest rate. b. Real GDP. c. Nominal and real exchange rates. d. Money supply. e. Real wage rate.
If unskilled labor is relatively plentiful and cheap in many foreign countries, then as the United States expands its trade with these foreign countries, the domestic demand for
a. both skilled and unskilled labor will rise proportionately. b. skilled labor will fall and the demand for unskilled labor will rise. c. skilled labor will rise and the demand for unskilled labor will fall. d. both skilled and unskilled labor will be unaffected, assuming no barriers to free trade.
"I recognize that the market is effective at getting resources to their most valued uses, but I also recognize that the market can produce results that are grossly unfair." This speaker is implying:
A. neither market failure nor failure of market outcome. B. both market failure and failure of market outcome. C. market failure but not failure of market outcome. D. failure of market outcome but not market failure.