A substantial decrease in the aggregate price level that reduces firms' net worth may stall a recovery from a recession. This process is called
A) debt deflation.
B) moral hazard.
C) insolvency.
D) illiquidity.
A
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Compared to an open economy without a tariff, the amount of imported sugar will drop from ________ tons to ________ tons after the tariff is imposed. 
A. 80; 40 B. 60; 30 C. 40; 20 D. 20; 10
Historically, Brazil has suffered higher and more variable rates of inflation than Venezuela
You would expect the short-run aggregate supply curve of Brazil to be ________ than that of Venezuela, and the short-run Phillips curve of Brazil to be ________ than that of Venezuela. A) flatter; flatter B) flatter; steeper C) steeper; flatter D) steeper; steeper
Consider two countries: Eastland and Westland. Eastland's long-run Phillips curve sits further to the right than does Westland's long-run Phillips curve. Eastland and Westland are identical in all other ways. In particular, they have the same money supply growth rates. In the long run, compared to Westland, which of the following will we observe in Eastland?
a. higher unemployment and higher inflation. b. higher unemployment and the same rate of inflation. c. lower unemployment and higher inflation. d. None of the above is correct.
Fiscal policy works principally through shifts of the aggregate demand curve.
Answer the following statement true (T) or false (F)