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
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According to current Justice Department guidelines, mergers in an industry are seldom challenged if the industry
a. would have a postmerger Herfindahl index greater than 1,800 b. would have a postmerger Herfindahl index less than 1,000 c. has a premerger Herfindahl index greater than 1,800 d. has a premerger Herfindahl index less than 1,000 e. has a premerger Herfindahl index equal to 10,000
Antitrust policy has no relationship to socially desirable market performance
a. True b. False
Which of the following is an accurate description of the aggregate demand curve?
a. It is the sum of all individual demand curves for all products b. It shows all price levels at which firms' unit costs equal their percent markups. c. It is the curve decided upon by the voters. d. It shows the relationship between firms' unit costs and their percentage markups. e. It shows the equilibrium level of GDP associated with price level.
Risk pooling:
A. lowers the costs of catastrophes when they occur. B. reduces the chances of catastrophes happening. C. allows individuals the peace of mind that they will never have to pay the full expense of a catastrophe if it hits them. D. All of these statements are true.