The self-correcting tendency of the economy means that rising inflation eventually eliminates:
A. unemployment.
B. exogenous spending.
C. recessionary gaps.
D. expansionary gaps.
Answer: D
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Assume that Country X and Country Y are trading partners and the exchange rates are fixed. If prices in Country Y fall, which of the following is expected to happen?
a. Country X will export more. b. Economy of Country X will be depressed. c. Net exports will rise for Country X. d. Country Y will import more.
Which of the following is responsible for the distribution of paper currency in the United States?
A. the Federal Reserve B. the Office of the Comptroller of the currency C. the U.S. Treasury D. all of these
OSHA has improved worker safety
Indicate whether the statement is true or false
The demand curve for labor slopes downward because
a. few workers work at low wages. b. capital has been substituted for labor in most industries. c. of the diminishing marginal product of labor. d. All of the above are true.