The economic policy response to the 2001 recession consisted of
A) a rapid change in fiscal policy and monetary policy.
B) a sluggish change in fiscal policy and monetary policy.
C) a rapid change in fiscal policy and a sluggish change in monetary policy.
D) a sluggish change in fiscal policy and a rapid change in monetary policy.
A
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Moral hazard and adverse selection are the result of ________
A) prudential supervision B) any and all government policy C) excessive price fluctuations D) asymmetries of information
Figure 18.2Refer to Figure 18.2. After trade and specialization begin, the maximum amount of fishing poles that Macadamia can consume is:
A. 40. B. 100. C. 120. D. 160.
Aggregate demand is the relationship between the quantity of real GDP demanded and the ________
A) price level B) money wage rate C) real wage rate D) nominal GDP demanded
Assume that Honduras has a comparative advantage in producing bananas and exports bananas to Brazil. We can conclude that
A) Honduras has a lower opportunity cost of producing bananas relative to Brazil. B) Honduras also has an absolute advantage in producing bananas relative to Brazil. C) Brazil has an absolute disadvantage in producing bananas relative to Honduras. D) Labor costs are higher for banana producers in Brazil than in Honduras.