An economy that is operating below its full-employment capacity is experiencing:
a. Say's Law.
b. unrealizable inflationary expectations.
c. Keynesian aggregate demand.
d. an inflationary gap.
e. a recessionary gap.
e
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Which of the following is a good example of efficient specialization and voluntary exchange?
A. A college professor hires someone to rototill his or her garden to ready it for spring planting. B. A college professor works on the engine of a car for a neighbor who is a mechanic. C. A lawyer decides to babysit his or her young child and agrees to do so for others for cash. D. A physician agrees to help a neighbor work on his or her income tax return in exchange for his or her bookkeeping services.
Mergers between companies that previously existed in a supplier-buyer relationship are called
A) conglomerate mergers. B) diagonal mergers. C) horizontal mergers. D) vertical mergers.
If the interest rates rise, the present values of future dollars will _______.
Fill in the blank(s) with the appropriate word(s).
The self-correcting tendency of the economy means that falling inflation eventually eliminates:
A. exogenous spending. B. recessionary gaps. C. expansionary gaps. D. unemployment.