Suppose a country's economy has recently suffered a contraction and a spike in unemployment. A Keynesian would recommend __________.
a. increasing the minimum wage
b. raising tariffs and lowering income taxes
c. decreasing interest rates on government loans
d. borrowing money to spend on new public works projects
Question 2
Authoritarian systems that are often in the category of failed states deliberately confuse rule of law with rule by law, which essentially means that __________.
a. authorities adhere to the rule of law with no practical exceptions whatsoever
b. authorities use the law to achieve their ends, but are themselves above the law
c. there is an absence of any legal tradition in the country's history
d. the people play the most important role in shaping laws
In 2008, the U.S. economy suffered a gaping wound as several trillion dollars were ripped out of it.
Cost of Copying for the Follower Country
Data Used to Analyze Productivity in Country 1 and Country 2
GDP per Capita by Country Group, 1820–2008
Consider a two-period economy with no investment opportunities: first and second period output ...