Measures of the prices of groups of stocks, such as the Dow Jones Industrial Average and the S&P 500, are called
A. secondary markets.
B. index funds.
C. mutual funds.
D. stock indexes.
Answer: D
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Based on the figure below. Starting from long-run equilibrium at point C, a decrease in government spending that decreases aggregate demand from AD1 to AD will lead to a short-run equilibrium at__ creating _____gap.
A. B; no output B. D; an expansionary C. B; recessionary D. D; a recessionary
The circular flow of economic activity is a model of the:
a. role of unions and government in the economy. b. influence of government on business behavior. c. flow of goods, resources, payments, and expenditures between the sectors of the economy. d. influence of business on consumers.
Externalities are benefits or damages conferred upon people who are directly involved in an exchange of a good or service.
Answer the following statement true (T) or false (F)
Policy makers can select from a number of different exchange rate regimes. One of those options is a "hard peg." Which of the following best represents a hard peg?
A) a revaluation B) a currency board C) a flexible exchange rate regime D) the EMS E) none of the above