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
You might also like to view...
The online encyclopedia known as Wikipedia is an example of a public good that provides information. Explain why this good did not need to be provided by the government
What will be an ideal response?
Given the information in the table above. If these two countries trade these two goods with each other in context of the Ricardian model of comparative advantage, what is the lower limit for the price of cloth?
What will be an ideal response?
Which one of the following is a familiar type of asset-backed security?
a. U.S. Treasury bonds b. movie box-office receipts c. shares of stock in corporations d. securities backed by home mortgages e. none of the above
Which of the following countries has adopted the U.S. dollar as its own currency?
A) Ecuador B) Mexico C) Canada D) France E) Australia