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...
For most practical matters, economists assume that
A) individuals are risk neutral. B) individuals are risk lovers. C) individuals are risk averse. D) most individuals are risk lovers. E) most individuals are risk neutral.
In the official labor statistics, discouraged workers are:
a. counted as employed. b. counted as unemployed. c. included in the labor force. d. not included in the labor force. e. considered to be seasonally unemployed.
Suppose a McDonald's Big Mac costs 29 pesos in Mexico, and the exchange rate between the peso and the Canadian dollar is 10 pesos per Canadian dollar. According to purchasing power parity, a Canadian Big Mac should cost:
A. 290 Canadian dollars. B. 2.90 Canadian dollars. C. 5.80 Canadian dollars. D. 0.34 Canadian dollars.
Online music stores such as Apple's iTunes provide an alternative to buying CDs. The introduction of online music stores has shifted:
A. the demand curve of CDs to the right. B. the supply curve of CDs to the left. C. the demand curve of CDs to the left. D. the supply curve of CDs to the right.