The self-correcting tendency of the economy means that rising inflation eventually eliminates:
A. unemployment.
B. exogenous spending.
C. recessionary gaps.
D. expansionary gaps.
Answer: D
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Using the above table, the marginal utility for the sixth glass of water is
a. -1 utils b. -3 utils c. -5 utils d. -7 utils e. none of the above
Gross investment is equal to
A) depreciation minus net investment. B) net investment plus capital stock. C) depreciation plus net investment. D) net investment minus capital stock.
Which of the following was not a reason for the financial collapse in 2008?
a. inaccurate ratings by S&P and Moody's b. government promoting aggressive mortgage lending c. pooling of mortgage backed securities d. the absence of financial leveraging in the banking industry
Given the above graph, the competitive firm's short-run supply curve is the:
A. MC curve above F. B. MC curve above J. C. MC curve above G. D. MC curve above H.