Which of the Following Is Not a Characteristic of Pure

question 167

Multiple Choice

Which of the following is not a characteristic of pure capitalism?

• A)private property rights
• B)competitive markets
• C)laissez-faire policies
• D)central planning
• E)a reliance on prices to direct resources to their best uses

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Definitions:

Inflationary Gaps

A situation in macroeconomics where the demand for goods and services exceeds production due to excessive spending, leading to inflation.

Recessionary Gaps

Situations where the real GDP is lower than the potential GDP due to insufficient aggregate demand, leading to unemployment and underused resources.

Equilibrium GDP

The point at which the aggregate supply and aggregate demand within an economy are equal, indicating a state of economic balance.

Recessionary Gap

The difference between the actual output of an economy and its potential output, occurring during periods of economic downturn.