It is sometimes necessary for a economy to live with a degree of uncertainty

It is sometimes necessary for a economy to live with

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35.It is sometimes necessary for a _________________ economy to live with a degree of uncertainty over _______________ that would be politically unacceptable in the high-income economies. A. developing; unemploymentB. converging; inflation C. disconnected; fundamentals of growth D. converging; trade imbalancesAnswer: B Reference: Explanation: Type: Multiple Choice Difficulty: Medium Category: Understand36.In the U.S., international trade raises many _______________ that are the same as issues raised by ________________________ in the domestic economy.
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 GDP level.
Answer: D Reference: Explanation: Type: Multiple Choice Difficulty: Medium Category: Analyze

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