Self-Correcting Mechanism Reveals That

question 150

Multiple Choice

Self-correcting mechanism reveals that

• A)real wages will increase if there is an increase in price.
• B)nominal wages will fall if there is inflationary gap.
• C)nominal wages will increase if there is recessionary gap.
• D)in the long run economy will be in equilibrium at potential GDP.

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Definitions:

Pubic Lice

Small parasites that infest the human genital area, causing itching and discomfort; also known as crabs.

Host

An organism that harbors a parasite, or a computer that serves as a source of information or resources for other computers on a network.

Indefinitely

For an unspecified or unlimited duration, without a predetermined end point.