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:

3-Sigma

A statistical term that refers to three standard deviations away from the mean of a normal distribution, covering 99.7% of all values.

Natural Tolerances

Natural tolerances refer to the inherent variation limits in a manufacturing or production process, dictated by the process capabilities without external influences.

Groove Width

In manufacturing, the measurement of the width of a groove or slot, often critical in precision engineering contexts.

Center Line

In statistical process control, a line on a control chart that represents the average, expected value, or mean of the process being monitored.