Solved

Based on the Evidence, Most Economists Believe That the Self-Correcting

Question 114

Multiple Choice

Based on the evidence, most economists believe that the self-correcting mechanism operates


A) slowly with prices, but quickly with wages.
B) slowly with wages, but quickly with prices.
C) very slowly with wages.
D) efficiently, so that stabilization policy is not necessary.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Q109: If workers can see inflation coming, and

Q110: Rational expectations are the theory according to

Q111: The main reason why the economy's aggregate

Q112: A decrease in the price of foreign

Q113: A decrease in AS will trigger less

Q115: If expectations are "rational," can the Fed

Q116: In the 1990s, the United States benefited

Q117: Figure 33-8<br>​ <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB8592/.jpg" alt="Figure 33-8 ​

Q118: Demand-side inflation is usually accompanied by increasing

Q119: Figure 33-3<br>​ <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB8592/.jpg" alt="Figure 33-3 ​