The Economy's Self-Correcting Mechanism to Eliminate a Recessionary Gap Relies

question 137

Multiple Choice

The economy's self-correcting mechanism to eliminate a recessionary gap relies on

• A)falling interest rates that shift the aggregate demand curve outward.
• B)falling wage rates that shift the aggregate supply curve outward.
• C)rising wage rates that shift the aggregate supply curve inward.
• D)increases in the price level that shift the aggregate supply curve inward.

---

Definitions:

Normally Closed

A switch configuration where the contacts are in contact, allowing current to flow without activation.

Normally Open

A type of switch or contact arrangement that is open (disconnected) in its default state, allowing current flow when actuated.

Common Terminal

A connection point used in electrical devices where multiple circuits can meet and connect.

Operating Parameter

A variable that affects the operation of a system and can be adjusted to control the system's behavior.