Which of the Following Statements Is Most Consistent with the View

Multiple Choice

Which of the following statements is most consistent with the view that the economy has a self-corrective mechanism?

A) When the economy is in a recession,it will remain there until the government steps in to bring the economy out of the recession.
B) When the economy is in a recession,falling resource prices and declining interest rates will direct the economy back to full employment.
C) During economic booms,interest rates will fall,causing the economy to fall into a recession.
D) In a market economy,resource prices,such as wages,can only increase;they can never decrease.