An Economy May Not Quickly and Automatically Eliminate a Recessionary

question 5

Multiple Choice

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

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

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Definitions:

Vision

The ability to see, interpreting light signals through the eyes to form images of the surrounding environment.

Hearing

The sensory process by which sound waves are translated into signals that can be interpreted by the brain, allowing for the perception of sound.

Childbirth

The process of giving birth to a baby, involving labor and delivery.

Apgar Scale

A quick test performed on a newborn at 1 and 5 minutes after birth to assess the baby's heart rate, respiration, muscle tone, reflex response, and color, which helps determine if immediate medical care is necessary.