Under the Gold Standard

question 143

Multiple Choice

Under the gold standard,

• A)no nation had control of its domestic monetary policy, and therefore no nation could control its aggregate demand.
• B)the world's commerce was at the mercy of gold discoveries.
• C)discoveries of gold meant higher prices in the long run and higher real economic activity in the short run.
• D)All of the above are correct.

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Definitions:

Soybean Cost

The market price of soybeans, which fluctuates based on factors such as supply, demand, and market conditions.

Farmer

An individual engaged in the act of agriculture, raising living organisms for food or raw materials.

Short-Run Supply

The supply of goods that occurs within a timeframe where at least one factor of production is fixed.

Perfectly Competitive

A market structure characterized by a large number of small firms, identical products, and ease of entry and exit.