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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Betsy's utility depending from her consumption of coffee is shown in the table above. If the price of a cup of coffee is $2, Betsy's marginal utility per dollar from the 2nd cup of coffee per day is
A) 15. B) 40. C) 20. D) 32.5.
The Service Employees International Union is an example of a(n)
A) guild. B) craft union. C) industrial union. D) public-sector union.
To ensure interest rate parity, a decrease in the interest rate on Euroyen relative to Eurodollar deposits will require a greater expected appreciation of the Japanese yen against the U.S. dollar
a. True b. False Indicate whether the statement is true or false
If you discover that the opportunity cost of raising your economics grade is zero, you
a. are studying too hard and receiving a higher grade than is optimal for you. b. must be on the production possibilities frontier that describes your trade-offs between producing high grades and producing other goods. c. must be inside the production possibilities frontier that describes your trade-offs between producing high grades and producing other goods. d. must be producing more of other goods than is optimal for you.