The fact that output gaps will not last indefinitely, but will be closed by rising or falling inflation is the economy's:
A. income-expenditure multiplier.
B. self-correcting property.
C. short-run equilibrium property.
D. long-run equilibrium property.
Answer: B
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At macroeconomic equilibrium,
a. total investment equals total inventories. b. total spending equals total production. c. total consumption equals total production. d. total taxes equal total transfers.
A firm sells 150 units of output at a price of $8 each. The economic cost of producing the 150 units of output is $1,000 . Calculate the firm's level of economic profit
What will be an ideal response?
The "universal service" argument often requires that some products be sold at a loss while other products be sold at profits higher than normal
a. True b. False Indicate whether the statement is true or false
The use of a tariff provides monopoly protection since
A. it reduces competition from imports by raising the import price. B. it allows more imports into the country. C. it expands tax credits. D. it reduces exporters' profits.