List the drawbacks of the gold standard
What will be an ideal response?
1. Undesirable constraints on the use of monetary policy to fight unemployment.
2. A stable overall price level is achieved only if the relative price of gold and all other goods and services is stable.
3. A central bank cannot increase holdings of international reserves as its economy grows unless new gold is discovered.
4. Unfair advantage to gold-producing nations.
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A firm's long-run average cost curve
A) shows the lowest attainable average total cost of producing any level of output when the plant and labor are fixed. B) is the sum of all of its short-run average cost curves. C) tells the firm which plant size to use and which quantity of labor to use to minimize the cost of producing any level of output. D) all of the above
The idea that tariffs should be imposed to protect new and developing industries is referred to as
A) the start-up argument. B) the infant industry argument. C) the incubator business theory. D) the new markets theory.