When will stabilization policy be most effective in combating inflation?
A. When AS is flat
B. When AS is very steep
C. When AS has a moderately upward slope
D. When AS has a moderately downward slope
Answer: B
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Rebecca, a citizen of U.S., imported a watch from Switzerland. This transaction leads to a(n) ________
A) increase in the GNP of U.S. B) increase in the GDP of Switzerland C) decrease in the GDP of Switzerland D) increase in the GDP of U.S.
The final element of a financial crisis is
a. an economic downturn. b. a decline in confidence in financial institutions. c. declining prices of real estate or other assets. d. a vicious circle.
Which of the following does NOT shift the U.S. aggregate demand curve?
A. an increase in the supply of money B. an increase in GDP in Japan C. a decrease in taxes D. a decrease in the price level
A sudden appreciation in the exchange rate of a country deteriorates the terms of trade of the country
a. True b. False Indicate whether the statement is true or false