An Economy May Not Quickly and Automatically Eliminate a Recessionary

question 147

Multiple Choice

An economy may not quickly and automatically eliminate a recessionary output gap because wages

• A)never change in response to changes in the demand for labour.
• B)have a tendency to be sticky downward.
• C)have a tendency to fall too quickly.
• D)have a tendency to rise too quickly.
• E)are flexible but prices have a tendency to be sticky downward.

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Definitions:

Plagiarism

The act of copying someone else's work or ideas and presenting them as one's own without crediting the original source.

Summary

A brief statement or account that covers the main points of a more extensive document or presentation.

Paraphrase

The act of rewording text or speech to achieve clearer understanding, often to simplify or clarify meaning.

BP Oil Company

An international energy company known for exploring and producing oil and gas, headquartered in London, England.