Multiple Choice
When economists refer to the economy's self-correcting mechanism, they are referring to the fact that the
A) economy will react automatically to a recessionary gap through inflation.
B) economy will react automatically to an inflationary gap through deflation.
C) economy will react automatically to an inflationary gap through inflation.
D) simple multiplier is greater than the complex multiplier.
Correct Answer:
Verified
Correct Answer:
Verified
Q21: Economists generally assume that there is a
Q22: Profit per unit can be expressed as
Q23: The aggregate supply curve slopes upward because
Q24: Figure 10-9<br> <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB8592/.jpg" alt="Figure 10-9
Q25: Suppose we observe an economy experience an
Q27: Equilibrium GDP in excess of potential GDP
Q28: Figure 10-7<br> <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB8592/.jpg" alt="Figure 10-7
Q29: When the price level is considered, the
Q30: Figure 10-9<br> <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB8592/.jpg" alt="Figure 10-9
Q31: When the inflationary gap is finally eliminated,