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The Economy's Self-Correcting Mechanism to Eliminate a Recessionary Gap Relies

Question 137

Multiple Choice

The economy's self-correcting mechanism to eliminate a recessionary gap relies on


A) falling interest rates that shift the aggregate demand curve outward.
B) falling wage rates that shift the aggregate supply curve outward.
C) rising wage rates that shift the aggregate supply curve inward.
D) increases in the price level that shift the aggregate supply curve inward.

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