A deficit nation in a fixed exchange rate system can improve its balance of payments by increasing
a. its money supply.
b. its interest rates.
c. its level of real GDP.
d. aggregate demand.
b
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The natural unemployment rate is equivalent to all of the following EXCEPT the unemployment rate when:
A. the unemployment rate is zero. B. there is no output gap. C. cyclical unemployment is zero. D. there is only frictional and structural unemployment.
The Sherman Act of 1890
A) established the corporate income tax. B) prohibited price-setting agreements among sellers. C) required employers to bargain collectively with labor unions. D) set maximum prices railroads could charge interstate shippers. E) set minimum prices railroads could charge without being guilty of unfair trade practices.
Markets often generate negative externalities because
a. there are too many participants in the marketplace b. property rights are sometimes poorly defined c. identifying pollution sources isn't easy d. free riders are hard to control e. social benefits have not been internalized
As a result of the action of automatic stabilizers,
A. the government budget changes offset changes in national income. B. the government has had decreasing budget deficits over time. C. taxes and government spending rise when the economy enters a recession. D. taxes and government spending fall when the economy enters a recession.