In 2012, U

question 23

Multiple Choice

In 2012, U.S. national output was equal to about:

• A) $15.7 billion
• B) $15.7 trillion
• C) $50,000
• D) $10 trillion
• E) $13.1 million

---

Definitions:

Self-corrective Forces

Mechanisms within the market economy that work to naturally correct imbalances and return the economy to a state of equilibrium without external intervention.

Rational Expectations

The hypothesis that individuals form forecasts about the future based on all available information in a way that is consistent with the actual structure of the economy.

Active Stabilization Policy

Economic policies aimed at minimizing business cycle fluctuations through fiscal and monetary interventions by the government.

Money Supply

The total amount of money available in an economy at a particular time, including cash, coins, and balances held in checking and savings accounts.