Based on the graphs for an increase in aggregate demand and the Phillips curve, we can see that when inflation is low, ______.
a. RGDP is high
b. unemployment is low
c. aggregate demand is weak
d. aggregate demand is strong
c. aggregate demand is weak
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Define the following terms and explain their importance to the study of economics
a. greenhouse gases b. externality c. emissions permits d. known reserves
Minimum-wage laws affect all workers
a. True b. False Indicate whether the statement is true or false
If Matt Taylor gets his $800 loan from the Paris First National Bank in cash rather than in the form of a new checkable deposit, the:
A. Paris First National Bank will get $800 in new reserves. B. Paris First National Bank will not get $800 in new reserves. C. assets of the Paris First National Bank will increase by $800. D. assets of the Paris First National Bank will decease by $88.
The IMF offers loans to developing countries in times of balance of payment constraints, but the IMF also faces strong criticisms because:
A. contractionary fiscal policy and expansionary monetary policy tend to be ineffective against balance of payment constraints. B. contractionary fiscal and monetary policies are always undesirable for any developing country. C. it employs economists that know little about developing countries and their economic affairs. D. the conditions tend to be procyclical, therefore worsening the recessions.