Which market adjusts the quickest in response to shocks to the economy?
A) The asset market
B) The labor market
C) The goods market
D) The asset, labor, and goods markets adjust at about the same speed to eliminate a disequilibrium in the macroeconomy.
A
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What are the major factors that a TNC should weigh in deciding to invest in a developing country?
What will be an ideal response?
If a good is normal and income decreases, then
A. the supply curve will shift to the right. B. the demand curve will shift to the right. C. the supply curve will shift to the left. D. the demand curve will shift to the left.
Two of the implications of large U.S. trade deficits for the United States are:
A. decreased current consumption and decreased indebtedness to foreigners. B. reduced budget deficits and decreased indebtedness to foreigners. C. reduced current consumption and higher saving. D. increased current consumption and increased indebtedness to foreigners.
If the Fed wants to reduce the inflation rate, it should lower the discount rate.
a. true b. false