Reference: Explanation: Type: Multiple Choice Difficulty: Medium Category: Understand
37.Which of the following will have the greatest influence on shifting the aggregate supply curves of high-income countries to the right?
Reference: Explanation: Type: Multiple Choice Difficulty: Medium Category: Analyze
38.In 2010, many high-income countries will be focused on the short-term economic horizon due to aggressive and often controversial steps governments took to jump-start these economies out of severe recession. Considering the economic challenges that result from these policies, which of the following actions would be most advisable?
Reference: Explanation: Type: Multiple Choice Difficulty: Hard Category: Apply
39.In a number of middle to low-income economies around the world, governments may run an expansionary policy of huge and sustained budget deficits. This policy
A. uses the central bank as a mechanism for making loans to politically favored firms.B. will begin a cycle of heavy reliance on economic growth from a few exported products.C. counters inflation without regard to the shift to the left in aggregate demand.D. will shift aggregate demand to the right, so that output is beyond the potential