Discuss the trends and implications of the following graph, especially with respect to the official start of the EMU on January 1, 1999
What will be an ideal response?
The extent of intra-EU country trade has fluctuated since the mid-1980s, but the pronounced growth of this trade after the start of the EMU suggests that the adoption of the single euro currency may have encouraged commerce among EU countries, moving them closer to forming an optimum currency area.
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When the economy is operating at an output rate less than full-employment capacity,
a. a strong demand for resources will cause resource prices to rise. b. actual unemployment will be less than the natural rate of unemployment. c. the rate of inflation will tend to rise. d. weak demand for investment will place downward pressure on real interest rates.
What is causing South Africa’s youth unemployment problem?
a. Inability to devalue its currency b. High number of laws restricting hiring and firing c. High current account deficit d. Youth lack necessary work skills.