The principal way in which an economy self-corrects from an inflationary gap is through
A. deflation, which increases purchasing power.
B. inflation, which reduces purchasing power.
C. disinflation, which maintains purchasing power.
D. price level decreases, which stimulate production.
Answer: B
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In the United States, direct expenditures for governments between 1933 and 1943
A. Trended down for all governments. B. Trended up for state and local governments and down for the federal government. C. Trended up for all governments. D. Trended down for state and local governments and up for the federal government.
Changes in an organizational architecture must be:
A. coordinated and done all at once. B. coordinated and done randomly, starting with the solvable problems. C. coordinated and done sequentially, starting with the minor problems. D. coordinated and done sequentially, starting with the major problems.
Money as a medium of exchange
I. Facilitates the exchange of goods II. Reduces the incentive to barter A) I only B) II only C) Both I and II D) Neither I nor II
Specialization and exchange result from differences in productivity that lead to
A) self-sufficiency. B) comparative advantage. C) absolute advantage. D) opportunity cost.