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
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Consumers who ________ will be more likely to buy goods in outlet malls at a lower price, while consumers who ________ will be more willing to pay full price in regular stores
A) are more price-sensitive; are less price-sensitive B) are less price-sensitive; are more price-sensitive C) have high levels of wealth; have low levels of wealth D) are more status-conscious; are less status-conscious
Both the ________ do not put a great deal of emphasis on the capital account
A) absorption and monetary approaches B) monetary and elasticities approaches C) elasticities and absorption approaches D) None of the above