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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 Would Occur as Part of the Automatic
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Which of the Following Would Occur as Part of the Automatic

Question 146

Question 146

Multiple Choice

Which of the following would occur as part of the automatic adjustment process in an economy with a recessionary gap?


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

Correct Answer:

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