When Economists Refer to the Economy's Self-Correcting Mechanism, They Are

question 26

Multiple Choice

When economists refer to the economy's self-correcting mechanism, they are referring to the fact that the

• A)economy will react automatically to a recessionary gap through inflation.
• B)economy will react automatically to an inflationary gap through deflation.
• C)economy will react automatically to an inflationary gap through inflation.
• D)simple multiplier is greater than the complex multiplier.

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The hemisphere of the brain associated with logical reasoning, analytical thinking, and language processing.

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The discipline involved in gathering, examining, explaining, and displaying data.

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