The financial crisis of 2008 was triggered by:
A. a speculative bubble in the U.S. housing market.
B. austerity measures introduced by the U.S. government to reduce the federal deficit.
C. increased trade with China.
D. the economic integration of the European Union.
Answer: A
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An increase in Swiss prices will cause
A) an increase in the demand for U.S. dollars and an increase in the exchange rate of Swiss francs per dollar. B) a decrease in the demand for U.S. dollars and a decrease in the exchange rate of Swiss francs per dollar. C) an increase in the supply of U.S. dollars and a decrease in the exchange rate of Swiss francs per dollar. D) a decrease in the supply of U.S. dollars and an increase in the exchange rate of Swiss francs per dollar.
According to Simon Kuznets, which of the following is likely to induce economic growth in the automobile industry of a country?
a. An increase in the amount of labor used in the industry b. A government subsidy for automobile production c. An increase in the import of spare parts for the engines d. An increase in the number of paint bays per factory e. The replacement of manual assembly lines with robots
Refer to the above diagram, in which Qf is the full-employment output. An expansionary fiscal policy would be most appropriate if the economy's present aggregate demand curve were at:
A. AD2. B. AD0. C. AD3. D. None of these.
Laissez-faire economists believe:
A. government policies are largely ineffective in coordinating economic activity. B. government intervention in the market is necessary for a smoothly operating economy. C. most government policies would probably make things worse. D. government can implement policy proposals that have mostly positive impacts on the economy.