The self-correcting property of the economy means that output gaps are eventually eliminated by:
A. increasing or decreasing potential output.
B. government policy.
C. decreasing inflation only.
D. increasing or decreasing inflation.
Answer: D
You might also like to view...
What is new about environmental problems today is
A. that for the first time in history, we have environmental problems. B. the increased rate at which air and water pollution is occurring in the United States. C. the amount of attention the community now gives them. D. that environmental problems with pollution and garbage disposal have almost completely disappeared.
Pat used to work as an aerobics instructor at the local gym earning $35,000 a year. Pat quit that job and started working as a personal trainer. Pat makes $50,000 in total annual revenue. Pat's only out-of-pocket costs are $12,000 per year for rent and utilities, $1,000 per year for advertising and $3,000 per year for equipment.Pat's explicit costs are ________, and Pat's implicit costs are ________.
A. $16,000; $51,000 B. $15,000; $36,000 C. $35,000; $16,000 D. $16,000; $35,000