Events that arise spontaneously and unpredictably, often as a result of changes in consumer and business confidence regarding the economy, are called
A) supply shocks.
B) demand shocks.
C) recessions.
D) externalities.
B
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The self-correcting tendency of the economy means that rising inflation eventually eliminates:
A. unemployment. B. exogenous spending. C. recessionary gaps. D. expansionary gaps.
A dominant strategy is one that
a. makes every player better off b. makes at least one player better off without hurting the competitiveness of any other player c. increases the total payoff for one player d. is best for a player, regardless of what strategy other players follow e. leads to quicker convergence to market equilibrium
In general, supply curves slope upward because:
A. the government requires that more units be produced. B. rising prices provide producers with a greater profit incentive. C. consumers buy a greater quantity. D. technology improves the ability of firms to produce more at each possible price.
An upward shift of the aggregate expenditures schedule might be caused by:
A. a decrease in exports, with no change in imports. B. a decrease in imports, with no change in exports. C. an increase in exports, with an equal decrease in investment spending. D. an increase in imports, with no change in exports.