In the Long Run, the Economy Is

question 229

Multiple Choice

In the long run, the economy is:

• A) self-correcting, as commodity prices rise during recessionary gaps and fall during inflationary gaps to move the economy to long-run equilibrium.
• B) self-correcting, as prices of goods that are sticky in the short run become very flexible in the long run and thus move the economy to full employment.
• C) fluctuating, as nominal wages rise and fall during short-run economic fluctuations.
• D) self-correcting, as nominal wages rise during recessionary gaps and fall during inflationary gaps to move the economy to long-run equilibrium.

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Definitions:

Acute Stressor

A sudden and intense event or situation that triggers stress.

Presentation

The act of presenting information or ideas to an audience using various formats, such as speech or slides.

Nervousness

refers to a state of being easily agitated or alarmed, often associated with feelings of anxiety or apprehension.

Chronic Stressor

A stress causing factor or condition that persists over an extended period of time, often leading to long-term health issues if not addressed.