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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The total output produced by a firm divided by the quantity of workers employed by the firm is the definition of
A) the division of labor. B) the average cost of production. C) the average product of labor. D) the marginal product of labor.
Economics
The annual colonial trade deficit (which equaled 20,000-40,000 pounds sterling in 1768-1772) was mostly financed by:
a. an outflow of specie. b. paper money. c. short-term credit from England. d. payments made by a few very wealthy colonists.
Economics