What are the three initial conditions that trigger economic populism?
What will be an ideal response?
Economic populism is usually triggered by three initial conditions. First, there is a deep dissatisfaction with the status quo, usually as a result of slow growth or recession. Second, policy makers reject the traditional constraints on macro policy. Budget deficits financed through printing money are justified by the existence of high unemployment and idle factories, which offer room for expansion without inflation. Third, policy makers promise to raise wages while freezing prices and to restructure the economy by expanding the domestic production of imported goods, thereby lessening the need for foreign exchange.
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Hester owns an ice cream sho
A) $2. B) $20. C) $10. D) $40. E) $4.
Are the wages of the pilots marginal costs or sunk costs to an airline trying to decide whether to add a late-night flight from Seattle to San Francisco? They are
A) marginal costs because pilots are indispensable to the flight. B) sunk costs if the pilots will receive no additional compensation for the flight. C) marginal costs because they will be paid after the flight rather than before. D) sunk costs because pilots' wage rates are determined by a contract already existing.