The Economy's Self-Correcting Mechanism

question 93

Multiple Choice

The economy's self-correcting mechanism

• A) prevents the economy from ever being in disequilibrium
• B) guides the economy to full employment in the long run
• C) maintains a steady long-run price level
• D) is a short-run adjustment process
• E) is controlled by the Fed

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Definitions:

Union Recognition

The formal acknowledgment by an employer that a labor union represents the collective interests of its workers, often followed by collective bargaining.

Better Wages

An improvement in the compensation that workers receive for their labor, often a key objective of labor unions and worker advocacy groups.

National Labor Relations Act

A foundational piece of U.S. legislation, established in 1935, that protects workers' rights to organize, to bargain collectively, and to engage in other activities related to collective bargaining and mutual aid.

Employer's Willingness

An indication of how open or receptive an employer is to engaging in practices such as negotiations, improvements, or concessions in the workplace.