Multiple Choice
The self-correcting property of the economy means that output gaps are eventually eliminated by:
A) rising or falling prices.
B) falling prices only.
C) increasing or decreasing potential output.
D) government policy.
Correct Answer:
Verified
Correct Answer:
Verified
Related Questions
Q78: Refer to the figure below.The economy pictured
Q79: When the inflation rate decreases, PAE _,
Q81: An example of a negative inflation shock
Q82: Firms suddenly becoming pessimistic about future business
Q85: A sudden increase in household wealth is
Q86: Starting from potential output, if consumer confidence
Q87: For a given inflation rate, if a
Q88: A large increase in oil prices is
Q91: Starting from potential output, if consumer confidence
Q112: The tendency for inflation to change relatively