Which of the following is not consistent with a self-correcting economy?
a. Falling wages that correct a recessionary gap
b. Falling prices that correct a recessionary gap
c. Rising prices that correct an expansionary gap
d. Tendency of the short-run aggregate supply to shift until it intersects aggregate demand at potential GDP
e. An active approach to a recession or depression
e
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All of the following were important structural changes in American capitalism during the period 1960–95 except
(a) New technology in the form of automated (machine-guided) production processes (b) A capital-labor accord which allowed workers to share in productivity gains through wage increases, particularly during the 1950s and 1960s (c) An increase in self-sufficiency as the nation reduced its economic interdependence with other nations (d) A large and central role for government in directing the post-war economy
At outputs less than the minimum of average variable cost:
a. marginal cost is greater than average variable cost. b. marginal cost is less than average variable cost. c. marginal cost is equal to average variable cost. d. marginal cost is parallel to average variable cost.