If a group of economists believes the following points are true, which is likely to be their policy making stance?
? Aggregate demand shocks have no long run effect on real Gross Domestic Product (GDP) or unemployment.
? Pure competition is widespread throughout the economy.
? Real wages are flexible.
? The Phillips Curve trade-off does not exist in the long run.
A) They will support discretionary policy making.
B) They will support passive policy making.
C) They will support active policy making.
D) They will argue that any attempt at economic policy making is futile.
B
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The sum of the current account, the capital account, and the official reserve transaction account is
A) always positive. B) always negative. C) positive when exports are greater than imports. D) zero.
In the United States, dumping is
a. encouraged because it lowers prices for consumers b. prohibited by the Trade Agreement Act of 1979 c. discouraged by domestic consumers who benefit from the lower price d. encouraged because it encourages competition e. encouraged because it promotes expenditure on R&D