A deficit country, like Argentina in 2001, must follow restrictive monetary and fiscal policy in order to maintain a fixed exchange rate
a. True
b. False
Indicate whether the statement is true or false
True
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Prior to 1996 the government measured real GDP using 1987 prices
What would the rapid growth in computers and the fall in computer prices tend to do to the difference between true GDP growth and measured real GDP growth, relative to using a later year?
A monopolist currently sells 18 units of a good. If marginal revenue on the last unit sold is $117, then the price of the good must be less than $117
Indicate whether the statement is true or false
A major difficulty with the infant industry argument for protection is that
A) government revenue will fall with a tariff. B) it requires the nation to fall into the large country case for tariff protection. C) effective rates of protection are usually greater than nominal rates. D) the measurement of production externalities is hard and uncertain. E) the productivity of infant industries is usually declining.
In deriving LM curves, holding the real money supply constant while raising real GDP causes us to
A) trace up along an LM curve. B) trace down along an LM curve. C) shift the LM curve to the right. D) shift the LM curve to the left.