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
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Company Z is a U.S. company that has just entered the market for a given good and is the first in this country to produce that good. The good is already being produced in many foreign countries is exported to the United States. If company Z wants to restrict this foreign competition, it will most likely use which of the following arguments?
A) anti-dumping B) national-defense C) job-creation D) infant-industry E) low-foreign-wages
Which of the following is consistent with the law of demand?
A. An increase in the price of hamburgers causes a decrease in the quantity of hamburgers demanded. B. A decrease in the price of tacos causes sellers to want to sell less. C. A decrease in the price of egg rolls causes a decrease in the quantity of egg rolls demanded. D. An increase in the people's craving for pizza causes buyers to buy more pizza.