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
You might also like to view...
If personal income minus transfer payments is rising, real GDP is most likely
A) rising. B) falling. C) remaining stable. D) getting ready to fall.
People are unlikely to choose to pay extra for a low-emissions automobile, because they:
A. do not fully understand the environmental benefits of lower emissions. B. are better off "free-riding" on others' attempts to reduce emissions. C. would have to sacrifice fuel efficiency and automotive performance. D. cannot afford the extra expense of "green" technology.
Investors usually obtain bond ratings from:
A. the U.S. government from publicly available information. B. private bond-rating agencies. C. public Information made available by the bond issuers. D. the annual tax returns of the issuer.
While a large country can either be better off or worse off due to the imposition of a tariff, the same country will necessarily be worse off as a result of imposing an equivalent import quota.
Answer the following statement true (T) or false (F)