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
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If a union cannot increase the demand for union labor, then an increase in union wages will result in a decrease in union employment
Indicate whether the statement is true or false
Economics
Which of the following is necessary for the economy to be in equilibrium?
a. Income must be greater than output. b. Income must be less than output. c. Aggregate expenditure must equal output. d. Aggregate expenditure must equal investment.
Economics