Each of the Following Is Something That Economists Know About

Multiple Choice

Each of the following is something that economists know about business cycles, unemployment, and inflation in the long run except

A) the market economy does not tend to return to a position of near-full employment in the long run.
B) that markets for goods and labor do - absent large blockages - reach something like a supply-and-demand equilibrium.
C) that the central bank's policy is in the long run the absolutely crucial determinant of the price level and
The inflation rate.
D) that shortfalls of national saving or booms in investment will bring inflows of capital and the trade deficits needed to finance them.