The automatic stabilizers are:
a. Powerful engines that can move nations closer to full employment and price stability.
b. Most beneficial to nations that are far away from their ideal economic position.
c. Most beneficial to nations that are close to the ideal economic position.
d. Very beneficial to nations regardless of whether they are far above or far below full employment.
.C
You might also like to view...
Adam Smith coined the term "invisible hand" to describe the process by which the actions of independent, self-interested buyers and sellers will:
A. always lead to the most efficient allocation of resources. B. often lead to increasing inequality. C. always lead an economy to ruin. D. often lead to the most efficient allocation of resources.
The self-correcting tendency of the economy means that falling inflation eventually eliminates:
A. exogenous spending. B. recessionary gaps. C. expansionary gaps. D. unemployment.
Education at a private university is NOT a pure public good because it is
A) nonrival. B) excludable. C) both nonrival and nonexcludable. D) None of the above answers is correct.
"Lender of last resort" means that the central bank
a. has to lend money to failing banks. b. should lend money to individuals if their bankruptcy would threaten the banking system. c. should lend money to banks that are suffering short-term liquidity shortages. d. should lend money to pay for government deficits. e. None of the above