Explain how the gold standard operated
What will be an ideal response?
Under the gold standard, each country defined their currency in terms of gold. If U.S. residents imported more than they exported, other countries turned in dollars for gold, causing the money supply to fall in the United States. Interest rates would then increase, causing an influx of foreign capital and an improved balance of payments.
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Gross domestic product measures the ________ value of ________ goods and services produced during a ________ time period
A) inherent; market; fixed B) final; intermediate; stable C) intermediate; final; constant D) market; final; given
Compared to a permanent reduction in tax rates, a temporary tax cut will generally
a. exert a larger impact on output and employment because its effects are immediate, long-lasting, and do not add much to the national debt. b. exert a smaller impact on output and employment because the temporary cut will not exert much impact on long-term income or the incentive to earn. c. exert a larger impact on output and employment because the temporary tax cut will lead to a larger budget deficit. d. exert an identical impact on output and employment because the incentive effects will be the same regardless of whether the tax cut is temporary or permanent.
An increase in the price of steel will result in
A. a decrease in the prices of automobiles. B. an increase in the cost of labor to produce automobiles. C. an increase in the equilibrium quantity of automobiles. D. a decrease in the supply of automobiles.
When the price of pistachio nuts is $7.50 per lb. the quantity demanded is 48 lbs. When the price of pistachio nuts is $9.00 per lb. the quantity demanded is 40 lbs. When the midpoint formula is used to measure the price elasticity of demand we can say
that the demand for pistachio nuts is A) relatively, but not perfectly, elastic. B) unit elastic. C) completely inelastic. D) relatively, but not perfectly, inelastic.