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
You might also like to view...
Assume that seigniorage and the government's primary deficit are both zero. If the real interest rate is greater than the growth rate of real GDP, the debt-to-GDP ratio
A) will increase. B) will decrease. C) will either decrease or not change. D) will either increase or not change.
Economics
A movement along the supply curve might be caused by a change in a. technology
b. supplier's input prices. c. expectations about future prices. d. the price of the good or service that is being supplied.
Economics