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...
Which of the following is an example of a fixed input?
a. The acreage of a farmer's land. b. Machinery. c. The size of a firm's plant. d. All of these.
Select the graph above that best shows the change in the market specified in the following situation: In the market for leather coats, when leather coats become more fashionable among young consumers.
Graph A Graph B Graph C Graph D
The first step in enforcing any antitrust policy is to
A. win the support of the public. B. define the market. C. win congressional approval. D. win the approval of the state senators from the state where the company is headquartered.
An increase in the money supply would cause the IS curve to
A. shift up and to the right. B. shift down and to the left. C. remain unchanged. D. shift up and to the right only if people face borrowing constraints.