During crisis periods, such as major snowstorms, the prices of basic goods, such as bread and milk rise. The price increases are clear evidence of
A) price gouging.
B) government regulation.
C) the market making it possible for the people who place the highest monetary value on bread and milk get bread and milk.
D) corruption.
C
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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.
When the government imposes taxes on buyers and sellers of a good, society loses some of the benefits of market efficiency
a. True b. False Indicate whether the statement is true or false
Productive efficiency implies that
What will be an ideal response?
In which of the time periods below was the surplus as a percentage of GDP the largest?
A. Late 1980s B. Late 1990s C. Late 1940s D. Late 1960s