The self-correcting property of the economy means that output gaps are eventually eliminated by:
A. increasing or decreasing potential output.
B. government policy.
C. decreasing inflation only.
D. increasing or decreasing inflation.
Answer: D
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A mixed enterprise is one
A) where the government has significant ownership in a private company. B) in which the company has more than one legal structure, such as limited liability and sole proprietorship. C) that combines for-profit activities with education. D) that has both for-profit and non-profit operations.
Of the combined Social Security tax rate, _____ goes to pay for _____
a. 2.9; Medicaid b. 2.7; Medicare c. 2.9; Medicare d. 2.7; Medicaid
Unemployment that results from technological changes that renders some people's skills obsolete is called: a. frictional unemployment. b. cyclical unemployment
c. structural unemployment. d. seasonal unemployment.
Which of the following is the appropriate order of policy responses?
A. Response design, recognition, impact, and implementation. B. Recognition, response design, implementation, and impact. C. Recognition, response design, impact, and implementation. D. Response design, implementation, recognition, and impact.