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Which of the Following Is Not Consistent with a Self-Correcting

Question 68

Multiple Choice

Which of the following is not consistent with a self-correcting economy?


A) falling wages that correct a recessionary gap
B) falling prices that correct a recessionary gap
C) rising prices that correct an expansionary gap
D) the tendency of the short-run aggregate supply curve to shift until it intersects the aggregate demand curve at potential GDP
E) an active approach to a recession or depression

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