Multiple Choice
The principal way in which an economy self-corrects from an inflationary gap is through
A) deflation, which increases purchasing power.
B) inflation, which reduces purchasing power.
C) disinflation, which maintains purchasing power.
D) price level decreases, which stimulate production.
Correct Answer:
Verified
Correct Answer:
Verified
Q143: Productivity is the amount of output produced
Q144: The existence of an inflationary gap or
Q145: When inflation occurs, net exports will<br>A)increase as
Q146: Figure 10-3<br> <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB8592/.jpg" alt="Figure 10-3
Q147: Recessionary gap arises when<br>A)inventory stock falls.<br>B)government spending
Q149: A higher expected price level would shift
Q150: Self-correcting mechanism reveals that<br>A)real wages will increase
Q151: The recessions of the 1970s are often
Q152: From the mid-1980s until late 2007, many
Q153: When OPEC cut energy production in 1973,