Multiple Choice
An economy is likely to recover from a recession quickly (without government intervention) when
A) it is caused by a negative supply shock and wages are fixed.
B) it is caused by a leftward shift in aggregate demand and wages are fixed.
C) it is caused by a leftward shift in aggregate demand and wages are flexible.
D) it is caused by a financial crisis.
E) it is caused by a leftward shift in aggregate supply and output prices are fixed.
Correct Answer:
Verified
Correct Answer:
Verified
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