Keynesian theory became important when classical economic theory did not adequately explain a prolonged period of:
A. Inflation with low unemployment.
B. Inflation with high unemployment.
C. Deflation with low unemployment.
D. Deflation with high unemployment.
D. Deflation with high unemployment.
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An environmental protection agency in Eduland has launched a campaign against the use of plastic bags. This is an example of ________
A) backward induction B) indoctrination C) anchoring D) sniping
If foreign holdings of U.S. dollars decrease, holding all else constant,
A) the balance on the U.S. current account will decrease. B) the U.S. balance of trade will decrease. C) the balance on the U.S. financial account will decrease. D) the balance on the U.S. capital account will decrease.
According to the rational expectations theory
A. anticipation of inflation can cause deflation. B. anticipation of inflation actually causes inflation. C. inflation rates are unrelated to unemployment rates. D. the economic understanding of workers and managers is incomplete, making it unlikely that their inflationary expectations will influence the economy.
According to Heckscher and Ohlin, each country has certain ______, such as land, labor, and capital.
Fill in the blank(s) with the appropriate word(s).