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
Economics
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If the Federal Reserve conducts an open market sale, the:
A. interest rate will not change. B. interest rate will increase. C. interest rate will decrease. D. money supply is increased.
Economics
The 45-degree reference line indicates all points at which
A. planned real saving and planned real saving are equal. B. planned real consumption expenditures and planned real saving are equal. C. planned real consumption expenditures and real GDP are equal. D. planned real saving and planned real investment are equal.
Economics