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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When the real interest rate rises, there is
A) neither a shift of the consumption function nor a movement along the consumption function. B) a downward shift of the consumption function. C) a downward movement along the consumption function. D) an upward shift of the consumption function. E) an upward movement along the consumption function.
Aid is a relatively small percentage of all foreign capital flows to developing countries. Is it unimportant?
What will be an ideal response?
If a firm increases its output in the ________ and unit costs ________, then the firm is experiencing ________ of scale
A) long-run; decrease; economies B) short-run; decrease; economies C) long-run; decrease; diseconomies D) short-run; decrease; diseconomies E) long-run; increase; economies
A professionally managed portfolio of assets intended to provide income to retirees is called:
A. a mutual fund. B. a stock. C. a derivative. D. investing by proxy.