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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Intermediate inputs are
A) goods used for household consumption only. B) goods used for government consumption only. C) goods purchased by one business from another to use in production. D) goods purchased by foreigners. E) raw materials used in the production process.
If a rise in anticipated inflation produces for some reason a less-than-equal rise in the nominal interest rate, this ________ the costs of anticipated inflation by ________ saving
A) reduces, encouraging B) reduces, discouraging C) increases, encouraging D) increases, discouraging
Which of the following statements is not true about the economy of the Middle Colonies?
a. It was a net importer of food. b. The farms were generally smaller than those in the South. c. Wheat and flour were exported from this region. d. Its main agricultural products were grains.
The aggregate demand curve is downward sloping
a. True b. False Indicate whether the statement is true or false