Solved

The Fact That an Economy Always Returns to the Natural

Question 15

Multiple Choice

The fact that an economy always returns to the natural rate level of output is known as

A) the excess demand hypothesis.
B) the price-adjustment mechanism.
C) the self-correcting mechanism.
D) the natural rate of unemployment.

Related Questions

Q10: Suppose the economy is producing at the

Q11: According to aggregate demand and supply analysis,the

Q12: In the long-run equilibrium<br>A)output is a function

Q13: According to aggregate demand and supply analysis,the

Q14: Suppose the economy is producing at the

Q16: Which of the followings does NOT shift

Q17: By looking at aggregate demand via its

Q18: Suppose the economy is producing at the

Q19: Which of the followings is NOT true

Q20: The more willing monetary policymakers are to