The self-correcting property of the economy means that output gaps are eventually eliminated by:

A. increasing or decreasing potential output.
B. government policy.
C. decreasing inflation only.
D. increasing or decreasing inflation.


Answer: D

Economics

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If the nation's capital stock increases so that workers become more productive, the

A) demand for labor will increase. B) supply of labor will increase. C) demand for labor will decrease. D) supply of labor will decrease.

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One aspect of bank accounting is that many liabilities of banks are

A. assets of other persons and businesses in the economy. B. also liabilities of other persons and businesses in the economy. C. not matched by liabilities of most other banks. D. not actually owed to any other person or business in the economy.

Economics

Which of the following is not among the factors that lead to economic growth?

a. Increases in employment b. Increases in the capital stock c. Improvements in technology d. Government transfer programs e. Political stability and an efficient legal system

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The market produces too few public goods because:

A.) The link between payment and consumption is broken. B.) They must be paid for by wealthy individuals. C.) Only the government can produce public goods. D.) The market distributes goods to those with the most money.

Economics