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
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If the demand is ________, a fall in price ________ total revenue
A) elastic; increases B) elastic; decreases C) inelastic; increases D) inelastic; does not change
The optimal time for the implementation of contractionary fiscal policy would be
A. before inflation accelerated. B. after inflation accelerated. C. after unemployment increased. D. after the price level had risen significantly.
Dumping occurs when a foreign monopolist charges ______ price in the domestic market than/as in a foreign market.
a. a lower b. a higher c. the same d. an equivalent
The primary interest of firms engaging in offshoring is to find lower wages and to decrease production costs
Indicate whether the statement is true or false