The fact that an economy always returns to the natural rate level of output is known as
A) the excess demand hypothesis.
B) the price-adjustment mechanism.
C) the self-correcting mechanism.
D) the natural rate of unemployment.
C
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If in the short run the demand for mass transit is relatively inelastic and in the long run the demand is relatively elastic, then a price ________ will ________ total revenue in the short run but ________ total revenue in the long run.
A. decrease; decrease; decrease B. decrease; increase; decrease C. increase; decrease; increase D. increase; increase; decrease
Variables that change before real GDP changes are measured by the:
a. personal income index. b. real GDP index. c. forecasting gauge. d. index of leading indicators.
How does the United States differ from the European Union in how it balances the competing claims of equality and efficiency?
Which of the following is included in the computation of gross domestic product?
(a) Government transfer payments, such as unemployment benefits (b) Purchases of used goods, such as used cars (c) Child care tasks performed by househusbands (d) Total value of business inventories (e) Additions to business inventories