Suppose a hurricane causes a great deal of destruction in Florida. After the hurricane, it takes much longer than usual for the reconstruction to take place. A possible explanation for this is
A) greed by suppliers of construction materials increased.
B) government prevented price gouging during the reconstruction period.
C) prices of construction materials fell in the Midwest.
D) environmental restrictions on lumbering in the Pacific Northwest were relaxed.
B
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When compared to national defense expenditures, human resources expenditures _____
a. declined substantially during the 1980s b. have remain stable since the 1950s c. are a smaller percentage of GDP d. have increased substantially since the mid 1960s
Assume that foreign capital flows into a nation rise due to expected increases in stock market appreciation. If the nation has highly mobile international capital markets and a fixed exchange rate system, what happens to the GDP Price Index and monetary base in the context of the Three-Sector-Model? a. The GDP Price Index rises and monetary base rises
b. The GDP Price Index rises and monetary base falls. c. The GDP Price Index and monetary base fall. d. The GDP Price Index and monetary base remain the same. e. There is not enough information to determine what happens to these two macroeconomic variables.