The principal way in which an economy self-corrects from an inflationary gap is through
a. deflation, which increases purchasing power.
b. inflation, which reduces purchasing power.
c. disinflation, which maintains purchasing power.
d. price level decreases, which stimulate production.
b
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Which of the following would not be a central issue in economics?
a. Who produces the goods? b. How is production carried out? c. Who consumes what? d. What goods are produced? e. When are goods consumed and produced?
Poverty is a mainstream event experienced by a majority of Americans
a. True b. False Indicate whether the statement is true or false
What economic concept is represented using the equation E(MB) > E(MC)?
a. comparative advantage b. net marginal benefit c. cost of marginal thinking d. rule of rational choice
NOW (negotiable order of withdrawal) accounts
A. are really just interest-bearing checking accounts under a different name. B. cannot earn interest. C. can only be issued by commercial banks. D. can be issued by most insurance companies and real estate agencies.