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
You might also like to view...
Refer to Figure 24-2. Ceteris paribus, an increase in the price level would be represented by a movement from
A) SRAS1 to SRAS2. B) SRAS2 to SRAS1. C) point A to point B. D) point B to point A.
The marginal propensity to consume is:
a. the change in income divided by the change in consumption. b. consumption spending divided by income. c. income divided by consumption spending. d. the change in consumption divided by the change in income. e. the change in consumption divided by income.
The poverty income threshold in the United States was originally calculated by
A. multiplying a nutritionally adequate food plan for emergency use by 5. B. multiplying a nutritionally adequate food plan for emergency use by 2. C. multiplying a nutritionally adequate food plan for emergency use by 4. D. multiplying a nutritionally adequate food plan for emergency use by 3.
Refer to the information provided in Figure 9.1 below to answer the question(s) that follow. 
Figure 9.1Refer to Figure 9.1. If this farmer maximizes profits, his average fixed costs will be
A. $2. B. $7. C. $11. D. $24.