The Overall Behavior of the Economy

question 158

Multiple Choice

The overall behavior of the economy

• A) is remarkably stable over time.
• B) differs over time as prices become increasingly flexible in the months and years following a shock.
• C) differs over time as prices become increasingly sticky in the months and years following a shock.
• D) is easily controlled and stabilized by government policy.

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Definitions:

Four Humors

An ancient and medieval belief that health was maintained by a balance of four bodily fluids.

Hippocrates

An ancient Greek physician often referred to as the "Father of Medicine," known for his lasting contributions to the field such as the Hippocratic Oath.

Phlegm

A thick, sticky mucus secreted by the mucous membranes of the respiratory tract, particularly during a cold or other respiratory infection.

Renaissance

A period of revival in art, literature, and learning in Europe occurring from the 14th to 17th centuries, marking the transition from medieval to modern times.