Macroeconomics

One way to characterize technological change is “creative destruction,

One way to characterize technological change is “creative destruction,” which basically means that today’s innovation will productively destroy yesterday’s capital investment. This destruction creates new job opportunities, boosts production and offers a greater variety or more goods and services than in the past. Indicate whether the statement is true or false   ANSWER TRUE

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Date: September 10th, 2020

In the Mundell-Fleming model, all of the following are true EXCEPT: a

In the Mundell-Fleming model, all of the following are true EXCEPT: a. the intersection of the IS and LM curves determine the equilibrium exchange rate. b. the BP curves position is determined by the exchange rate. c. the policy choice between fixed and floating exchange rates shifts the BP curve. d. the extent of capital […]

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Date: September 10th, 2020

From 1860 to 1910, international net capital flow into the U.S. (a) w

From 1860 to 1910, international net capital flow into the U.S. (a) was positive when the U.S. economy expanded. (b) was neutral and not influenced by the U.S. business cycle. (c) was negative when the U.S. economy grew. (d) was positively impacted by U.S. discussions about and actual restrictions on immigration.   ANSWER (a)

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Date: September 10th, 2020

The federal government incentive to support special-interest groups (s

The federal government incentive to support special-interest groups (steel, auto, drug, environment) at the expense of unorganized, widely dispersed groups (for example, taxpayers or consumers) occurs (a) only when the benefits that accrue to the special-interest group exceed the costs imposed on others. (b) when nonspecial-interest voters are unconcerned or uninformed about the issue, and […]

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Date: September 10th, 2020

Which of the following provides a tool by which you can measure overal

Which of the following provides a tool by which you can measure overall price changes paid by representative individuals living in urban households? (a) The GDP Deflator ( NGDP/RGDP 100, expressed as a percentage ) (b) The Producer Price Index (c) The Consumer Price Index (d) The Housing Price Index   ANSWER d

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Date: September 10th, 2020