As a Recessionary Gap Is Eliminated Through an Economy's Self-Correcting

question 66

Multiple Choice

As a recessionary gap is eliminated through an economy's self-correcting adjustments process,

• A) the equilibrium price level increases and the equilibrium real output decreases.
• B) the equilibrium price level decreases and the equilibrium real output increases.
• C) the equilibrium price level and the equilibrium real output increase.
• D) the equilibrium price level and the equilibrium real output decrease.

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Definitions:

Zeitgeber

Environmental event that entrains biological rhythms; German for “time giver.”

Entrained

The synchronization of an organism's circadian rhythms to that of an external rhythm in its environment.

Biological Rhythms

Natural cycles of physical, mental, and behavioral changes that follow a periodic, predictable pattern, such as circadian rhythms or menstrual cycles.

Earth Orbiting

The path followed by an object, such as a satellite, as it revolves around the Earth under the influence of gravitational force.