Examine the Government's Hand in Fixed Exchange and Floating Exchange

question 69

Essay

Examine the government's hand in fixed exchange and floating exchange rates as they relate to the Gold Standard.How did Nixon intervene in the free market? Was this intervention successful?

---

Definitions:

Production Inefficiency

A situation where resources are not utilized in the best possible manner, resulting in wasted potential output.

Production Possibility Frontier

A graphical representation that shows the maximum combination of two goods or services that can be produced within a given time period, given available resources and technology.

Economic Growth

A growth in an economy's ability to generate goods and services when comparing two different time periods.

Unemployment

A condition where people who are willing to work at prevailing wage rates cannot find employment.