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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Increased profits provide more internal funds to finance capital investments and a major factor in lenders' and investors' decisions to provide external funds to the firm
Indicate whether the statement is true or false
Why is the Clayton Act of 1914 considered to have been favorable to the interests of organized labor?
(a) It restricted the application of the Sherman Antitrust Act and excluded labor unions from it. (b) It legalized collective bargaining for the first time. (c) It declared labor to be an article of commerce. (d) It forbade the use of injunctions by the courts to stop strikes.
In the classical model, when an open economy has balanced trade, Say's law holds
a. True b. False
Research shows programs like unemployment insurance, disability or health insurance, and job training can be effective in fighting:
A. neither transient nor chronic poverty. B. chronic poverty, but not transient poverty. C. both transient and chronic poverty. D. transient poverty, but not chronic poverty.