Exam 37: Structural Stagnation and Globalization

Suppose a young person asked you for job advice in a globalized economy. Which of the following sectors would you try to dissuade them most from entering?

Explain how globalization can limit a country's potential output.

In the globalized AS/AD model, what curve indicates the amount of tradable goods that other countries will supply to a country at a given price level and exchange rate?

Based on what we know about the globalized AS/AD model, the standard model does not include an analysis of:

In the graph shown, the globally constrained potential output is:

In the early 2000s, policy makers were able to:

In the graph shown, a shift in the AD curve to the right:

Suppose an economy's trend growth rate is 3 percent and current output is $10 trillion. If the economy enters a recession where output declines by 5 percent in one year, by how much does output have to rise to return to its trend? Assume it takes two years for the economy to return to its trend.

The short-run cause of structural stagnation is tied to:

In the globalized model, the eventual equivalency of domestic and world prices follows from the:

Looking at the graph shown, the structural adjustments necessary to bring the economy back to domestic and international equilibrium include:

Which would help resolve structural stagnation?

Which of the following will be least effective in dealing with the structural adjustment problems?

The United States has done very poorly at the high end of the value-added chain.

Which of the following will help address structural stagnation problems?

Which of the following would not shift the world supply curve up?

The globalized AS/AD model relates:

The central difference between the structural stagnation hypothesis and the secular stagnation theory is that:

What are three ways in which a country might deal with a structural stagnation?

Explain the role that globalization and technological change play in the structural stagnation hypothesis.