If the economy is self-regulating, then it follows that

A) recessionary and inflationary gaps are temporary economic states.
B) wages will fall when the economy is in a recessionary gap.
C) wages will rise when the economy is in an inflationary gap.
D) the economy is always in long-run equilibrium.
E) a, b and c


E

Economics

You might also like to view...

The figure above shows that as a result of the tariff, consumer surplus in the United States

A) decreases by $105 million per year. B) increases by $55 million per year. C) decreases by $30 million per year. D) decreases by $20 million per year. E) remains unchanged.

Economics

Quantity Demanded

What will be an ideal response?

Economics

Country A can produce either 2 tons of cocoa or 4 cars with 10 units of labor. Country B can produce either 5 tons of cocoa or 25 cars with 10 units of labor. Based on this information, which of the following is true?

(a) Country A has an absolute advantage in the production of cocoa, while Country B has a comparative advantage in the production of cocoa (b) Country A has a comparative advantage in the production of cocoa, while Country B has a comparative advantage in the production of cars (c) Country A has an absolute advantage in the production of cocoa, while Country B has a comparative advantage in the production of cars (d) Country A has a comparative disadvantage in the production of both goods (e) Neither country has a comparative advantage in the production of either good

Economics

Suppose that the elasticity of demand for a product is 0.5. What will happen to total revenue as a firm increases the price?

A. Total revenue will increase. B. Total revenue will decrease. C. Total revenue will stay the same. D. It cannot be determined from the information provided.

Economics