Consider a society consisting of just a farmer and a tailor. The farmer has 10 units of food but no clothing. The tailor has 40 units of clothing but no food. Suppose each has the utility function U = F ? C. The price of clothing is always $1

Policies to reduce the likelihood of financial crises might include ________

A) enlarging government budget deficits B) reducing imbalances in global trade and capital flows C) keeping the inflation rate near or below zero D) more aggressive use of stabilization policy E) all of the above

The standard of living typically refers to

A) the rate of unemployment. B) output per capita. C) wealth per capita. D) all of the above