The self-correcting tendency of the economy means that falling inflation eventually eliminates:

A. exogenous spending.
B. recessionary gaps.
C. expansionary gaps.
D. unemployment.


Answer: B

Economics

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A plastics factory emits water pollutants into a nearby river

The marginal private cost of producing plastics is constant, the marginal external cost of the pollutants increases with the quantity of plasticis, and the demand for plastics is downward sloping. What happens to the socially optimal level of output and market price if the marginal external cost curve shifts upward? A) Optimal price and quantity decrease B) Optimal price increases, optimal quantity remains unchanged C) Optimal price increases, optimal quantity decreases D) Optimal price and quantity decline

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The concept of network externalities is most relevant to purchasers of

a. computer software. b. automobiles. c. television sets. d. radios.

Economics

Equilibrium is the point where total spending equals total output, or GDP

a. True b. False Indicate whether the statement is true or false

Economics