What will happen if a country uses money creation to finance a large and expanding national debt?
a. Real output and employment will grow rapidly.
b. Nominal interest rates will fall.
c. The foreign exchange value of the currency will increase.
d. The rate of inflation will rise.
D
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The value of leisure time is
A) included in GDP and, in recent years, has become an increasing large part of GDP. B) excluded from GDP. C) zero. D) directly included in GDP but, in recent years, has become a decreasing large part of GDP. E) directly included in GDP and, in recent years, has not changed much as a fraction of GDP.
Explain how compensation plans like piece rate payment, capitation fees, and hourly payment options resolve the principal/agent problem faced by employers
Figure 17-10
Refer to . Producer surplus with trade and without a tariff is
a.
G.
b.
C + G.
c.
A + C + G.
d.
A + B + C + G.
Fixed costs plus variable costs equal:
A. marginal costs. B. average costs. C. average total costs. D. total costs.