The self-correcting property of the economy means that output gaps are eventually eliminated by:
A. increasing or decreasing potential output.
B. government policy.
C. decreasing inflation only.
D. increasing or decreasing inflation.
Answer: D
You might also like to view...
The table above gives Cathy's total utility from Mt. Dew. Cathy's marginal utility from the 3rd Mt. Dew is ________ units
A) 75 B) 65 C) 25 D) 20
Games can be judged according to the payoffs
A) as zero-sum, negative-sum, and positive-sum games. B) as collusive or noncollusive games. C) as competitive or noncompetitive games. D) whether all companies participate or not.
For which of the following groups has the poverty rate declined most in the United States?
a. unmarried heads of households b. married heads of households c. less-educated African-Americans d. African-Americans with high school but not college educations e. people 65 and older
Suppose that the exchange rate between the U.S. dollar and the Mexican peso is 1 peso = $0.11. If the U.S. dollar price per Mexican peso changes to 1 peso =$0.10, the peso is said to have __________ and the dollar to have __________
A) depreciated; appreciated B) appreciated; appreciated C) appreciated; depreciated D) depreciated; depreciated