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PART FOUR: OPEN ECONOMY MACROECONOMICS AND THE INTERNATIONAL MONETARY SYSTEM
Chapter 16: Prices and output in an Open Economy: Aggregate Demand and Aggregate Supply

1. The most important economic objective of industrial nations is:

2.In order to achieve internal and external balance simultaneously, a nation must usually use at least:

3. Points below internal balance line YY in the Swan diagram indicate:

4.To correct a balance of payments deficit and unemployment a nation requires a:

5. To correct a balance of payments deficit and inflation a nation requires a:

6.To correct a balance of payments surplus and unemployment a nation requires a:

7.To correct a balance of payments surplus and inflation a nation requires a:

8.The IS curve is negatively inclined because:

9. If the BP curve is above the point of intersection of the IS and LM curves, the nation will:

10.To correct unemployment from a condition of external balance, a nation will usually have to use:

11.  To achieve external balance and correct a recession, a nation will always have to use tight monetary policy if at the full employment level of national income the nation's BP curve is:

12. In a world of perfectly elastic international capital flows and fixed exchange rates:

13. To correct unemployment and a balance of payments deficits with flexible exchange rates and imperfect capital mobility:

14. To correct a balance of payments surplus and inflation a nation requires:

15.To correct a balance of payments deficit and inflation a nation requires:



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