The self-correcting tendency of the economy means that falling inflation eventually eliminates:
A. exogenous spending.
B. recessionary gaps.
C. expansionary gaps.
D. unemployment.
Answer: B
You might also like to view...
The supply curve indicates the minimum quantity that a producer would be willing to supply at alternative prices
Indicate whether the statement is true or false
Which of the following will prevent firms from engaging in price discrimination?
A) odd pricing B) transactions costs C) arbitrage D) yield management
If there are discouraged workers: a. they are included in the official count of the unemployed
b. the unemployment rate will tend to overstate the true level of unemployment. c. the unemployment rate will tend to understate the true level of unemployment. d. they are considered part of the labor force.
Spot exchange can be inefficient in the presence of:
A. a complex contracting environment. B. opportunism. C. spot checks. D. None of the statements is correct.