Suppose there is a 5 percent increase in nominal demand in every industry in an economy. Factors that keep the price level from also rising by 5 percent are called
A) real rigidities.
B) nominal rigidities.
C) macroeconomic externalities.
D) indexations.
B
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The passage of the Smoot-Hawley Tariff in 1930 sparker a trade war that caused net exports to ___ and real GDP to ___
Fill in the blank(s) with the appropriate word(s).
One major characteristic of the price system is that
A) consumers together are the ones who ultimately decide what is produced. B) individual sellers ultimately decide what is produced in the market. C) competition among sellers is reduced. D) all exchanges are regulated by the government.
Small-denomination certificates of deposits are
A) included in M1 and M2. B) included in M2 but not M1. C) included in M1 but not M2. D) included only in M1.
Refer to Scenario 12.2. Explain why the situation described in the scenario is neither a prisoner's dilemma nor a battle of the sexes
What will be an ideal response?