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.

---

Definitions:

Structural Violence

Physical and/or psychological harm caused by impersonal, exploitative, and unjust social, political, and economic systems.

Globalization

Worldwide interconnectedness, evidenced in global movements of natural resources, trade goods, toxins, human labor, finance capital, information, and infectious diseases.

Structural Violence

A form of violence wherein social structures or institutions harm people by preventing them from meeting their basic needs.

Equality

The state of being equal, especially in status, rights, and opportunities.