A Necessary Condition for the Economy to Be Self-Regulating Is

question 95

Multiple Choice

A necessary condition for the economy to be self-regulating is that

• A) wages must be relatively high.
• B) the labor market must always be in equilibrium.
• C) the interest rate must be above its equilibrium level.
• D) wages must be flexible in both an upward and downward direction.
• E) none of the above

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Definitions:

Positive Outcomes

Favorable or beneficial results or effects of an action, behavior, or procedure.

Neutral Outcomes

Results or consequences of an action that neither significantly benefit nor harm the situation or the individuals involved.

Past Behaviours

Previous actions or patterns of actions taken by an individual, often used to predict future behaviors.

Free Will

The ability of agents to make choices unconstrained by certain factors, often discussed in the context of philosophy, psychology, and religion.