The self-correcting tendency of the economy means that rising inflation eventually eliminates:
A. unemployment.
B. exogenous spending.
C. recessionary gaps.
D. expansionary gaps.
Answer: D
You might also like to view...
The above figure shows Bobby's indifference map for juice and snacks. Also shown are three budget lines resulting from different prices for snacks. Bobby's demand for snacks is
A) unit elastic. B) elastic. C) inelastic. D) perfectly elastic.
If the reserve ratio was 10 percent for the bank with the balance sheet listed below, then this bank is being ? Assets ? ? Liabilities & Net Worth ? Reserves $2,500,000 ? Checking Deposits $5,000,000 Loans Outstanding $2,000,000 ? ? ? Total $5,500,000 ? Net Worth ? ? ? ? Stockholders’ Equity $500,000 ? ? ? Total $5,500,000
A. aggressive as indicated by a small amount of excess reserves. B. aggressive as indicated by a large amount of excess reserves. C. cautious as indicated by a small amount of excess reserves. D. cautious as indicated by a large amount of excess reserves.
Bottlenecks:
A. occur only in one-way networks. B. occur in both one-way and two-way networks. C. are a positive externality associated with networks. D. occur only in two-way networks.
The consumer optimum for consuming two goods is achieved when
A) the total utility from each good is equal. B) the price of each good is equal. C) the price multiplied by the marginal utility is equal for the two goods. D) the marginal utility per last dollar spent is equal for the two goods.