Used alone, an expenditure-switching policy that turns spending from foreign goods to domestic goods
A) will not reduce the current account deficit.
B) is likely to cause a recession.
C) will be likely to increase the current account deficit.
D) is likely to increase domestic inflation.
D
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A market in which competition and entry are restricted by the granting of a public franchise, government license, patent, or copyright is called a
A) legal monopoly. B) natural monopoly. C) single-price monopoly. D) price-discriminating monopoly.
In comparing China to Canada, China's relatively ________ growth rate in GDP would make you more likely to take a job in China, and China's relatively ________ level of GDP would make you less likely to take a job in China
A) low; low B) high; low C) high; high D) low; high
If a nonbinding price ceiling is imposed on a market, then the
A. price in the market will decrease. B. price in the market will increase C. quantity sold in the market will stay the same. D. quantity sold in the market will decrease.
Frictional unemployment:
A. refers to unemployment caused by friction between labor and management. B. refers mainly to unemployment resulting from fluctuations in output. C. comes from people entering the labor force and changing jobs. D. is undesirable and should be eliminated at all costs.