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

Multiple Choice

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

A) Market forces work relatively well in pushing the economy to potential GDP.
B) Prices and wages are flexible.
C) A contractionary gap is corrected through falling wages and prices.
D) The short-run aggregate supply tends to shift until it intersects aggregate demand at potential GDP.
E) An active approach to a recession or depression.