The following figure introduces the relationship between industrial production and wholesale price index changes between the years 1929-1935. What is the purpose of the following figure?
What will be an ideal response?
The purpose is to show that countries that left the gold standard early and adopted counter-deflationary monetary policies, such as Australia and the United Kingdom, experienced milder declines in output during the Great Depression. Countries such as France and Switzerland that stuck to the gold standard longer had greater decline in price level and output.
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A newspaper headline reads: "Fed Cuts Federal Funds Rate for Fifth Time This Year." This headline indicates that the Federal Reserve is most likely trying to ________.
A. ease monetary policy B. tighten monetary policy C. raise interest rates D. reduce inflation in the economy
Voluntarism includes methods for dealing with pollution that
a. carry no legal authority. b. call the problems of pollution to the public's attention. c. involve trying to persuade polluters to reduce or eliminate pollution voluntarily. d. include all of the above.
The role of unions is:
A. unnecessary if the market does a good job of determining fair wages. B. to provide firms with a mechanism to more efficiently fire less productive workers. C. gaining power in the United States. D. All of these statements are true.
What role does population growth play in economic development?
What will be an ideal response?