If the economy automatically tends toward full employment, then government stabilization policy
A. must be constantly in force.
B. will be necessary only in recessions.
C. will be necessary only in inflationary periods.
D. will not be necessary.
Answer: D
Economics
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A) The rate of depreciation increases. B) The real interest rate decreases. C) The expected profit from the machine decreases. D) all of the above E) none of the above
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The people of Country X save 10 percent of their income, and the people of Country Y save 25 percent of their income. If these respective saving rates persist forever, will one country or the other enjoy a higher rate of income growth forever? Explain
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