The appropriate "medicine" for correcting payments imbalances under a fixed exchange rate system is
a. inflation for deficit countries and recessions for surplus countries.
b. no change for surplus countries, tax cuts for deficit countries.
c. inflation for surplus countries and recessions for deficit countries.
d. sales of gold for deficit countries and revaluations for surplus countries.
c
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The change in cost that results from a one-unit increase in output is called the
A) average fixed cost. B) per-unit variable cost. C) per-unit total cost. D) marginal cost. E) average cost change.
The value of GDP calculated by the expenditure method: a. includes inflation, while the value of GDP calculated by the income method excludes inflation. b. excludes inflation, while the value of GDP calculated by the income method includes inflation. c. is always equal to the value of GDP calculated by the income method
d. is always greater than the value of GDP calculated by the income method.