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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If the coupon payment on a bond is $500 and the coupon rate is 5%, then what is the face value of the bond?
A. $10,667 B. $10,000 C. $1,000 D. $678.40 E. There is not enough information provided to answer this question.
Which of the following is NOT a barrier to entry that would allow a monopolist to keep potential competitors out of its market?
A) Significant economies of scale exist. B) The market price of the product is too high. C) The firm has a patent on the good or control over some resource required for the production of the good. D) The firm has government authorization to be a monopoly.
What do rational expectations theorists believe? What is their critics' point of view?
GDP includes:
A. intermediate but not final products. B. substitute but not intermediate products. C. final but not intermediate products. D. complementary but not intermediate products.