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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A rent ceiling creates a shortage. As a result, there is
A) an efficient allocation of housing. B) a surplus of housing. C) an increase in the producer surplus in the housing market. D) a decrease in the producer surplus in the housing market.
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