The self-correcting tendency of the economy means that rising inflation eventually eliminates:

Potential GDP is estimated to grow at a rate of 3.2% in the United States. Actual GDP in the U.S

A) always grows at a slower rate than potential GDP. B) is the same as potential GDP if all firms in the economy were working at capacity. C) always grows at the same rate as potential GDP. D) always grows at a faster rate than potential GDP.

In Figure 3-6 above, at point J

A) there is unplanned inventory investment. B) there is unplanned inventory disinvestment. C) there is no change in inventory levels. D) intended and unintended inventory investment are equal.