The fact that output gaps will not last indefinitely, but will be closed by rising or falling inflation is the economy's:
A. income-expenditure multiplier.
B. self-correcting property.
C. short-run equilibrium property.
D. long-run equilibrium property.
Answer: B
You might also like to view...
With regard to its economic profits and economic losses, how is the short run different from the long run for a perfectly competitive firm?
What will be an ideal response?
Economic growth is the result of two major or general "determinants":
A) capital and autonomous planned spending. B) capital per capita and autonomous planned spending. C) capital per capita and autonomous growth factors. D) saving and autonomous growth factors.
Economic analysis assumes that
What will be an ideal response?
Suppose farmers in a given market can either grow soy beans or corn on their land. In addition, suppose an increase in the demand for corn causes the price of corn to increase. As a result of the increase in the price of corn, farmers who were already growing corn will earn an:
A. economic profit in the short run. B. economic loss in the short run. C. economic profit in the long run. D. economic loss in the long run.