Multiple Choice
Economist B believes that the economy can get stuck in a recessionary gap.This economist most likely believes that
A) wages and prices are flexible.
B) wages and prices are inflexible downward.
C) government may need to enact contractionary fiscal policy to move the economy out of a recessionary gap.
D) the economy is self-regulating.
E) none of the above
Correct Answer:
Verified
Correct Answer:
Verified
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