The self-correcting tendency of the economy means that falling inflation eventually eliminates:

A. exogenous spending.
B. recessionary gaps.
C. expansionary gaps.
D. unemployment.


Answer: B

Economics

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Under the assumptions of the new Keynesian model, an increase in aggregate demand will

A) increase prices and output in the short-run. B) lead to a decrease in unemployment and an increase in prices in the short run. C) lead to an increase in the nominal wage rate in the long run and a decrease in unemployment in the short run. D) All of the above are correct.

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Governments that steal from their own citizens are known as ________

A) pure democracies B) kleptocracies C) Mugabes D) antediluvians

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What should affect the fundamental value of a stock according to the efficient markets hypothesis?

What will be an ideal response?

Economics