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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An income tax for which the average tax rate decreases with income is called a
A) regressive income tax. B) proportional income tax. C) flat-rate income tax. D) progressive income tax.
Economics
The market for corporate takeovers
A) helps disciplines the behavior of CEOs. B) forces CEOs to focus on market share. C) had nothing to do with the monitoring of CEO behavior. D) is not efficient.
Economics