Mainstream Economists Think That

Multiple Choice

Mainstream economists think that:

A) Market participants change their actions in response to anticipated price-level changes such that no change in real output occurs
B) The economy self-corrects when unanticipated events divert it from its full-employment level of real output
C) The downward inflexibility of wages and prices may leave the economy stuck in a costly recession for long periods
D) Significant changes in technology and resource availability cause macroeconomic instability