Mainstream Economists Think That

question 84

Multiple Choice

Mainstream economists think that

• A)market participants change their actions in response to anticipated price-level changes such that no change in real output occurs.
• B)the economy self-corrects when unanticipated events divert it from its full-employment level of real output.
• C)the downward inflexibility of wages and prices may leave the economy stuck in a costly recession for long periods.
• D)significant changes in technology and resource availability cause macroeconomic instability.

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Definitions:

Aggressive Impulses

Innate or developed tendencies to act or react with hostility or violence towards others or oneself.

Adaptive Problem Solving

The ability to effectively identify solutions to problems in various situations, often emphasizing flexibility and resourcefulness.

Stressful Situations

Circumstances that trigger a response from the body's stress system, potentially causing physical, emotional, or psychological strain.

Interpretations

The act or process of explaining the meaning of something; often used in psychotherapy to understand the underlying meanings of thoughts or behaviors.