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

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


Answer: D

Economics

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In the above figure, the efficient amount of output is ________ units

A) 25 B) 50 C) 75 D) 100

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An example of a "contractual saving" financial intermediary is

A) a commercial bank. B) an insurance company. C) a money market mutual fund. D) a credit union.

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Which of these economic variables is procyclical?

A) consumer spending B) stock prices C) the government bond spread D) all of the above E) none of the above

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Compared to the profit-maximizing outcome, marginal cost pricing in natural monopoly leads to

a. reduced demand b. higher price c. reduced consumer surplus d. more economic profit e. greater output

Economics