The self-correcting property of the economy means that output gaps are eventually eliminated by:
A. increasing or decreasing potential output.
B. government policy.
C. decreasing inflation only.
D. increasing or decreasing inflation.
Answer: D
Economics
You might also like to view...
In the figure above, the initial demand curve is D0. There are no rent ceilings nor rent floors. The equilibrium monthly rent is
A) $100 per month. B) $200 per month. C) $300 per month. D) $400 per month.
Economics
Under which chair did the Fed implement the policy of inflation targeting?
A) Volcker B) Bernanke C) Greenspan D) Geithner
Economics