Under the gold standard of the Great Depression, any country experiencing a balance of payment deficit was expected to finance those deficits by exporting gold
The loss of gold should be followed by contractionary monetary policy, reducing demand and causing prices to fall. All countries operating under the gold standard followed these rules of the game throughout the Great Depression. Indicate whether the statement is true or false
False
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In the decade of the ________, A.W. Phillips plotted data for Great Britain which revealed a relationship between rates of changes in wages versus unemployment rates
Economists later discovered other "Phillips Curve" relationships between rates of inflation versus unemployment rates. A) 1930s B) 1940s C) 1950s D) 1960s
If U.S. net exports are negative, then net capital outflow is
a. positive, so foreign assets bought by Americans are greater than American assets bought by foreigners. b. positive, so American assets bought by foreigners are greater than foreign assets bought by Americans. c. negative, so foreign assets bought by Americans are greater than American assets bought by foreigners. d. negative, so American assets bought by foreigners are greater than foreign assets bought by Americans.
"Expansionary fiscal policy is needed to increase Real GDP --- at least in the short run." The economist who said this most likely believes that
A) the tax multiplier is larger than the government spending multiplier. B) the AS curve is vertical. C) there will be a great deal of crowding out connected with a rise in government spending. D) the AS curve is upward-sloping. E) c and d
Comparable worth is the principle that:
A. goods and services priced the same have about the same worth. B. the wage rate equals the value of productivity. C. men and women should be paid comparably. D. employees who perform comparable jobs should be paid the same wage.