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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In some areas, local appraisers have formed ________________________.
Fill in the blank(s) with the appropriate word(s).
Economics
Suppose the unemployment rate is 8 percent and the natural unemployment rate is 6 percent. If potential GDP is $8 trillion, using Okun's Law what does real GDP equal?
A) $8.32 trillion B) $8.00 trillion C) $8.16 trillion D) $7.68 trillion E) $7.84 trillion
Economics