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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The optimal hiring rule is to employ labor up to the point where:
a. wage = MP. b. wage = MR. c. wage = MRP. d. wage = MFC.
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Which of the following is not a tool of fiscal policy?
What will be an ideal response?
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The key driver behind the crowding out phenomenon is
A. a decrease in real GDP. B. a decrease in the interest rate. C. an increase in real GDP. D. an increase in the interest rate.
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If the market price for a good produced by a price taking firm is $5, the firm's total revenue is
A. downward sloping. B. a flat line at P=$5. C. an upward sloping line beginning at the origin and having a slope of 5. D. parabolic.
Economics