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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When someone sells a bond at a discount, the holder of the bond earns ________ with the purchase
A) a capital gain B) a capital loss C) market value D) interest
The WTO was:
a. formed shortly after World War II. b. authorized in the American Constitution. c. formed in 1995. d. formed in 1876. e. formed to unify the European continent.
The marginal revenue curve for a monopolist is always below the demand curve.
Answer the following statement true (T) or false (F)
During hyperinflations, people desire to hold less money and will go to the bank more frequently. This waste of resources due to the high rate of inflation is known as _____
Fill in the blank(s) with correct word