Which of the following is an argument in favor of outward-oriented strategy?
a. It leads to a fall in government deficit spending.
b. It leads to a fall in domestic prices of imported goods.
c. It helps the economy to grow more rapidly by encouraging exports.
d. It leads to an increase in the price of exported goods in the foreign markets.
e. It leads to an increase in the supply of goods and services in the domestic market.
c
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In order to analyze the factors that determine the quantity of real GDP demanded, in the aggregate expenditure model we assume that
A) real GDP does not change. B) the unemployment level is fixed. C) the inflation rate is assumed to equal the natural unemployment rate. D) the natural rate of unemployment is fixed. E) the price level is fixed.
The figure above shows the relationship between distance sprinted and recovery time. The curve becomes steeper because as the distance sprinted increases,
A) the extra recovery time needed from sprinting another 100 yards increases. B) the extra recovery time needed from sprinting another 100 yards decreases. C) the recovery time increases. D) the recovery time decreases. E) the relationship between distance sprinted and recovery time becomes more inverse.
Excess capacity refers to any unsold output due to insufficient demand
Indicate whether the statement is true or false
Which of the following groups makes it a point to emphasize that inflation occurs when the annual rate of growth of the money supply exceeds the annual rate of growth of full- employment real GDP?
a. the classical school b. the Keynesian school c. the neo-Keynesian school d. the rational expectations school e. supply-siders