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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Compared with a partnership, a corporation can raise money more easily because owners of a corporation have less liability for the corporation's actions than owners of a partnership have for the partnership's actions
Indicate whether the statement is true or false
Wich of the following indiviuals can be counted as Unemployed?
What will be an ideal response?
A shortage will develop when
A. the quantity supplied is greater than the quantity demanded. B. the government provides subsides to producers. C. the discovery of new technology reduces production costs. D. the market price is below the equilibrium price.
When the public expects inflation, real and nominal interest rates will differ because inflation needs to be accounted for in calculating the real return from lending and borrowing.
Answer the following statement true (T) or false (F)