Solved

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

Question 120

Multiple Choice

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


A) Falling wages that correct a recessionary gap
B) Falling prices that correct a recessionary gap
C) Rising prices that correct an expansionary gap
D) Tendency of the short-run aggregate supply to shift until it intersects aggregate demand at potential GDP
E) An active approach to a recession or depression

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions