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
Economics
You might also like to view...
A firm earns an operating profit if
a. price equals marginal cost. b. revenues exceed variable costs of production. c. price is less than average variable costs of production d. revenues equal fixed costs.
Economics
Most economic graphs have two lines perpendicular to each other. Where these lines meet is called the
A) origin. B) y-axis. C) x-axis. D) variable. E) point of beginning.
Economics