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
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Lauren runs a chili restaurant in San Francisco. Her total revenue last year equaled $111,000. The rent on her restaurant totaled $48,000. Her labor costs totaled $43,000. Her materials, food and other variable costs totaled $19,000
To Lauren's accountant, Lauren A) incurred a loss of $1,000. B) earned a profit of $1,000. C) incurred a loss of $111,000. D) earned a profit of $111,000. E) had a total cost equal to $91,000.
Which of the following is not a public good?
a. a coastal lighthouse b. national defense c. a flood-control levee d. the latest Walt Disney movie
The chief difference between one-shot inflation and continued inflation is that
A) Keynesians believe all inflations are one-shot inflations and monetarists believe all inflations are continued inflations. B) one-shot inflation is long and continued inflation is short. C) one-shot inflation is a single increase in the price level and continued inflation is a sustained increase in the price level. D) monetarists believe all inflations are one-shot inflations and Keynesians believe all inflations are continued inflations.
Which of the following is an example of a measure of labor productivity?
A. Factory workers produce 100 units of TVs per worker per day. B. Autos get 20 gallons to the mile. C. Wages increase by 3 percent per year for 5 years. D. A household's income increased by 3 percent last year.