The income effect explains why there is an inverse relationship between the price of a product and the quantity of the product demanded
Indicate whether the statement is true or false
TRUE
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The self-correcting tendency of the economy means that falling inflation eventually eliminates:
A. exogenous spending. B. recessionary gaps. C. expansionary gaps. D. unemployment.
GDP in 2015 would not include the resale of a house built in 2000
a. True b. False Indicate whether the statement is true or false
Mr. Jones pays his employees by the hour. He believes they purposely work slowly to maximize their personal satisfaction. What can he do to provide them with a stronger incentive to work efficiently?
Which of the following may not be indicated by low long-term interest rates?
(A) That the economy is expected to contract in coming years. (B) That consumers want to borrow money to invest. (C) The future health of the economy. (D) That businesses do not want to borrow money to invest.