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  3. Study Set
    Macroeconomics
  4. Exam
    Exam 24: From the Short Run to the Long Run: the Adjustment of Factor Prices
  5. Question
    Which of the Following Will Occur as Part of the Automatic
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Which of the Following Will Occur as Part of the Automatic

Question 36

Question 36

Multiple Choice

Which of the following will occur as part of the automatic adjustment process in an economy with an inflationary gap?


A) falling prices
B) increasing investment
C) declining government purchases
D) rising wages
E) increasing tax rates

Correct Answer:

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