When an economy faces an inflationary gap, an appropriate fiscal policy is to
A) increase aggregate demand.
B) decrease government expenditure.
C) decrease the quantity of money.
D) decrease taxes.
E) increase the quantity of money.
B
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The term "market" refers only to trading arrangements that have been approved by the government
Indicate whether the statement is true or false
"Hot money" is
a. funds that can be moved from one type of investment to another on very short notice. b. money that is stolen and used to buy financial instruments. c. money that is used by a central bank when a currency is appreciating, or becoming "hot.". d. funds that are being saved by a financial institution for good or "hot" times. e. money earned from very high-risk investments in less developed countries.
The supply curve for a perfectly competitive industry is obtained by
a. making an empirical study of historical data. b. vertically summing the supply curves of firms in the industry. c. horizontally summing the average cost curves of firms in the industry. d. horizontally summing the supply curves of firms in the industry.
________ is a union's attempt to withhold labor from a firm to halt production
a. Collective bargaining b. Binding arbitration c. Mediation d. Strike