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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Referring to Figure 19.2, an appreciation of the dollar is represented by a movement from point
A) b to c. B) c to d. C) a to c. D) a to d.
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Market failures include all of the following EXCEPT
A) equalization of quantity supplied and quantity demanded. B) public goods. C) positive externalities. D) negative externalities.
Economics