Macroeconomics primarily examines:
a. the behavior of individual households and firms
b. how prices are determined within individual markets.
c. the output levels that maximize the profits of business firms.
d. broad issues such as national output, employment and inflation.
d
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Illustrate with a graph the effects of monetary policy on the economy when exchange rates are flexible
What will be an ideal response?
If the equilibrium exchange rate is $1 = 90 yen, then at an exchange rate of $1 = 80 yen there is a
A) surplus of yen. B) shortage of yen. C) shortage of dollars. D) a and c E) b and c
What matters most in determining efficient distribution of production over the world is
A. absolute advantage. B. efficiency. C. the stock of resources. D. comparative advantage.
The economic approach to air pollution is:
A. to use command and control. B. internalizing the external cost with a pollution tax. C. marketable pollution permits. D. a subsidy for cars.