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...
The government collects tax revenues of $100 million and has $105 million in outlays. The budget balance is a
A) deficit of $5 million. B) surplus of $5 million. C) surplus of $100 million and a deficit of $105 million. D) deficit of $105 million. E) surplus of $105 million.
Economics
A change in a fixed tax will cause the consumption schedule to
a. become steeper. b. become flatter. c. shift in a parallel manner. d. remain fixed as the economy moves along the schedule.
Economics