Unemployment
Balance of Payments
Policy
Exchange Rates
Misc.
100
The population of Circlandia is 320. 20 people are not looking for work and the unemployment rate is 4%. Find the number of unemployed people
What is 12 people.
100
If a country is running a current account deficit, what must be true about it's balance of payments?
What is financial account surplus.
100
What are the two types of fiscal policy?
What are taxes and government spending?
100
When the People's Bank of China buys US T bills, the yuan ______.
What is devalues.
100
Name a merit for subsidies (over price controls).
Does not change Qd
200
Name the components of the NRU
What are structural, frictional, and seasonal unemployment?
200
A devaluation will improve a trade deficit if the Marshall Lerner condition is met. State the condition.
The sum of the PED of exports and the PED of imports must exceed 1.
200
Lowering the minimum wage or removing welfare benefits are what kind of policy?
What is market based supply side policy?
200
The movement of money for the purpose of investment, trade or business production
What are capital flows
200
A limit on imports
What is a quota
300
Training programs would resolve what kind of unemployment?
What is structural?
300
Payments for franchises and patents enter into what part of the Balance of Payments.
What is the capital account.
300
How do incentive related policies affect the AS/AD diagram?
What is shift the LRAS?
300
The buying, selling and holding currencies in order to make a profit from favorable fluctuations in exchange rates.
What is currency speculation
300
This occurs when the consumer does not pay an efficient price.
What is allocative inefficiency.
400
What kind of unemployment do unemployment benefits create?
What is structural unemployment.
400
Name the components of the financial account.
What are portfolio investments, FDI, and reserves.
400
This type of economist would advocate deficit spending on infrastructure during economic downturns.
What are Keynesians.
400
The power of the state to exercise exclusive legal control over its currency through control over designating, issuing and retiring legal tender.
What is sovereign monetary policy.
400
When the prices of all inputs are flexible.
What is the long run.
500
What is the relationship between stagflation and cyclical unemployment?
What is none.
500
How does Japan sustain a continuous current account surplus with a depreciating yen?
What is deflation?
500
Employed in Japan and Denmark, this monetary policy forces banks to pay interest on excess reserves.
What is a negative interest rate.
500
This system, abandoned in the Depression of the 1930s, defined the value of a currency in terms of ____, for which the currency could be exchanged.
What is the gold standard
500
Formula for opportunity cost of good X.
what you are sacrificing / what you are gaining = good y / good X
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