The Economy's Self-Correcting Mechanism

question 169

Multiple Choice

The economy's self-correcting mechanism

• A)tends to push unemployment toward a specific point called the natural rate of unemployment.
• B)works better at correcting inflationary gaps than recessionary gaps.
• C)cannot work if the Phillips curve is vertical.
• D)ensures that the economy will not have to endure a long period of high unemployment.

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Definitions:

Ambiguous Situations

Circumstances or scenarios that lack clarity or can be interpreted in multiple ways, often leading to confusion or indecision.

Mature Personality

The state of psychological development where an individual exhibits emotional stability, insight, and adaptive coping mechanisms.

Ego State

A data concerning psychological states associated with different aspects of the self, including the parental, adult, and child ego states in transactional analysis theory.

Flexibly Switches

The ability to adapt or change between different tasks, thoughts, or behaviors efficiently and appropriately.