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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According to the 1860 census, the top employer in manufacturing was the _______ industry
a. boots and shoes b. cotton textile c. flour and meal d. iron
When foreign countries buy wheat grown in the United States, they are generating a
A. Supply of U.S. dollars and a supply of a foreign currency. B. Supply of U.S. dollars and a demand for a foreign currency. C. Demand for U.S. dollars and a supply of a foreign currency. D. Demand for U.S. dollars and a demand for a foreign currency.
The theory of monopolistic competition predicts that in long-run equilibrium a monopolistically competitive firm will:
A. produce the output level at which price equals long-run marginal cost. B. operate at minimum long-run average cost. C. overutilize its insufficient capacity. D. produce the output level at which price equals long-run average cost.
Wall Street bosses who believed that the huge profits of their firms prior to the financial crisis that started in 2007 was their personal accomplishment, and that the financial crisis was due to overregulation by government illustrates the:
A. Confirmation bias B. Framing effect C. Hindsight bias D. Self-serving bias