The self-correcting tendency of the economy means that rising inflation eventually eliminates:

What is the difference between accounting profit and economic profit?

a. They are the same thing. b. They are only different if the accountant makes a mistake. c. Accounting profit is usually smaller than economic profits. d. Accounting profit makes no allowance for several implicit costs, including equity capital, while economic profit takes these costs into account.

Which of the following was a criterion to participate in the European Monetary Union?

A. The country's budget deficit must be less than 10 percent of the value of its gross domestic product (GDP). B. The gross government debt must be less than 100 percent of its GDP. C. The country's exchange rates must be maintained within the Exchange Rate Mechanism bands with no realignments during at least the previous ten years. D. The country's inflation rate must be less than or equal to 1.5 percentage points above the average inflation rate for the three lowest-inflation EU countries.