The fact that output gaps will not last indefinitely, but will be closed by rising or falling inflation is the economy's:
A. income-expenditure multiplier.
B. self-correcting property.
C. short-run equilibrium property.
D. long-run equilibrium property.
Answer: B
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Discuss the relationship between the aggregate supply curve and the short-run Phillips curve
What will be an ideal response?
________ is a company that obtains funds primarily from wealthy investors and uses the funds to make complicated, often risky investments
A) A mutual fund B) A pension fund C) A hedge fund D) An investment bank
Economists generally assume that there is a short-run trade-off between
a. output and employment. b. inflation and employment. c. deflation and unemployment. d. inflation and unemployment. e. output and growth.
Suppose that the equilibrium price of apples decreases and the equilibrium quantity of apples increases. This is best explained by:
A. an increase in the demand for apples. B. an increase in the supply of apples. C. a decrease in the supply of apples. D. a decrease in the demand for apples.