Author Question: The natural rate hypothesis states that the economy will self-correct back to the natural rate of ... (Read 81 times)

pepyto · **on:** Jun 30, 2018

The natural rate hypothesis states that the economy will self-correct back to the natural rate of unemployment, so that a move along a short run Phillips curve will not be permanent.
a. True
b. False
Indicate whether the statement is true or false

Question 2

Which of the following is true of import-substitution strategies?
a. They dominate the strategies of the developing world.
b. They focus on the production of goods not produced in developed countries.
c. They focus on the production of exportable goods.
d. These strategies lower the price of the domestically produced goods than the imported goods.
e. They generally require the removal of import barriers like tariffs or quotas.