Prices and wages are considered "sticky" if
A) their rates of increase and decrease are identical.
B) as prices increase, wages increase by the same percentage.
C) their rates of change are directly connected to the rate of change in unemployment.
D) they do not fully adjust to changes in demand and supply.
D
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An appropriate fiscal policy response when aggregate demand is growing at a faster rate than aggregate supply is to decrease the money supply
Indicate whether the statement is true or false
A financial asset is considered a security if
A) the owner of the security receives dividends and realizes a capital gain when the asset is sold. B) its value increases after it is sold in a primary market. C) it can be sold in a secondary market. D) its value is secure; that is, the owner will not suffer a financial loss when the asset is sold.
Pigovian taxes are used to counterbalance:
A. negative externalities. B. positive externalities. C. network externalities. D. They could be used to counteract any of these.
The term "balance of payments" refers to a nation's:
a. goods exports minus imports. b. record of all international transactions. c. capital inflows minus outflows. d. official reserves inflows minus outflows.