Which of the Following Is NOT Consistent with the Idea

Multiple Choice

Which of the following is NOT consistent with the idea that an economy's booms and busts can be self-fulfilling prophecies?

A) A boom is a good equilibrium, and a bust is a bad equilibrium.
B) When households spend a lot, firms tend to produce a lot.
C) An equilibrium occurs when workers underspend and firms overproduce.
D) If households believe firms will cut back on hiring, households cut back on spending.