If a Market Economy Has a Self-Correcting Mechanism, When Output

Multiple Choice

If a market economy has a self-correcting mechanism, when output is lower than potential or full-employment output,

A) changes will occur that will automatically guide the economy back to full employment.
B) resource prices will increase.
C) prolonged unemployment such as was experienced during the Great Depression will occur.
D) the economy will fall into a more severe recession.