The fact that output gaps will not last indefinitely, but will be closed by rising or falling inflation is the economy's:
A. income-expenditure multiplier.
B. self-correcting property.
C. short-run equilibrium property.
D. long-run equilibrium property.
Answer: B
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The players in a game theory situation often do not act in their joint interest because of which of the following?
A) They do not realize the benefit of cooperation. B) Players strive to minimize their opponents' profits. C) Players do not understand the game and its payoffs. D) It is not in each player's self-interest to cooperate. E) Players understand the game but they do not know which action(s) will benefit their joint interest.
Which of the following advertising statements could be considered greenwashing?
A) "Made of only recycled materials" B) "Our lasagna is made with love." C) "100 percent money back guarantee" D) "Guaranteed to make you want to dance!"
During a period of economic depression, such as has existed for a long period in Japan, a profit-oriented bank will act in such a way that
A. dampens the fluctuations. B. makes the depression worse. C. is neutral with respect to the fluctuations. D. is counter-cyclical and stabilizing.
An industry that realizes such large economies of scale in producing its product that single-firm production of that good or service is most efficient is called a(n)
A. fixed cost monopoly. B. patent monopoly. C. economies of scale monopoly. D. natural monopoly.