Which of the following is incorrect?
A. Floating exchange rates permit countries to have different inflation rates.
B. Overall, floating exchange rates discipline countries to have low inflation rates.
C. With fixed exchange rates, a country that prefers to have a lower inflation rate than its trading partners will tend to import inflation from its partners.
D. Since 1973, high degrees of variability of floating exchange rates may have caused considerable adjustment into or out of trade-oriented production from time to time.
Answer: B
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Indicate whether the statement is true or false
Refer to Figure 10.2. Which line represents earnings?
A. a
B. b
C. c
D. h
Reduced military spending shifts the aggregate demand curve to the left
a. True b. False Indicate whether the statement is true or false
Frictional unemployment always exists because
A. recessions are necessary sometimes to keep the economy healthy. B. the government has never instituted full employment policies. C. some workers quit their jobs without having another job already lined up. D. workers are lazy and refuse to accept certain jobs.