Economists feel that taxing nominal capital gains imposes costs on the economy due to

An economic variable that moves in the same direction as aggregate economic activity (up in expansions, down in contractions) is called

A) procyclical. B) countercyclical. C) acyclical. D) a leading variable.

What is known as the Dutch disease?

a. The problem that arises when a government cannot meet its foreign debts b. The phenomenon of a boom in one industry causing declines in the rest of the economy c. A sudden and unexpected devaluation of a currency as a consequence of policy controls d. The problem that arises when high imports force an economy to borrow from external sources e. A deficit in the balance of payments of the economy that arises due to a sudden appreciation of the domestic currency.