Which of the Following Would Occur as Part of the Automatic

question 146

Multiple Choice

Which of the following would occur as part of the automatic adjustment process in an economy with a recessionary gap?

• A)rising prices
• B)decreasing investment
• C)increasing government purchases
• D)falling tax rates
• E)decreasing wages

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Definitions:

Opportunity Cost

The cost of forgoing the next best alternative when making a decision or choosing between multiple options.

Sweden

A Nordic country in Northern Europe, known for its high standard of living, well-developed welfare states, and neutral foreign policy stance.

Boats

Watercraft of various sizes and types that are used for transportation, recreation, or as a dwelling.

Absolute Advantage

The ability of a country, individual, or company to produce a good or service more efficiently than competitors using the same amount of resources.