What are the three initial conditions that trigger economic populism?
What will be an ideal response?
Economic populism is usually triggered by three initial conditions. First, there is a deep dissatisfaction with the status quo, usually as a result of slow growth or recession. Second, policy makers reject the traditional constraints on macro policy. Budget deficits financed through printing money are justified by the existence of high unemployment and idle factories, which offer room for expansion without inflation. Third, policy makers promise to raise wages while freezing prices and to restructure the economy by expanding the domestic production of imported goods, thereby lessening the need for foreign exchange.
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Savings accounts are the most liquid of all assets because they can be quickly and easily transferred
a. True b. False Indicate whether the statement is true or false
Thomas Edison once complained that he was not making a profit selling light bulbs because his plants were operating 25 percent below capacity. He estimated that he could increase output 25 percent with a 2 percent increase in the cost of production. He sold the 25 percent on the foreign market at a price below what he called the "cost of production." We can deduce that Edison really meant
a. Marginal cost was below average cost but less than marginal revenue. b. Average cost exceeded variable cost, which exceeded marginal revenue. c. Variable cost exceeded fixed cost but was less than marginal revenue. d. Marginal cost was above average cost but greater than marginal revenue.
If price rises from $2 to $3 and the quantity demanded falls from 100 to 99, price elasticity of demand would be
A. 0.03. B. 0.67. C. 1.23. D. 5.81.
The opportunity cost of producing a good is the additional labor cost incurred to produce an extra unit of the good.
Answer the following statement true (T) or false (F)