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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Indicate whether the statement is true or false

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Regulating an industry to remove all economic profit

a. removes all incentive for efficiency and responsiveness to consumer demand. b. removes distortions caused by cross subsidies. c. removes allocative inefficiency. d. increases incentives to be productively efficient.

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