By What Mechanism Does the Economy Always Return to Full

question 11

Multiple Choice

By what mechanism does the economy always return to full employment after a demand shock in the short run?

• A) Wages automatically adjust themselves.
• B) The interest rate automatically adjusts itself.
• C) Prices automatically adjust themselves.
• D) Taxes automatically adjust themselves.
• E) Rents automatically adjust themselves.

---

Definitions:

Formatting

The process of arranging or modifying the appearance of text, data, or documents to make them more readable or visually appealing.

Microsoft Office Specialist (MOS)

A certification provided by Microsoft to validate an individual's proficiency in using Microsoft Office applications.

Excel 2013

A version of Microsoft's spreadsheet software released in 2013, featuring numerous calculation, graphing tools, and pivot table features.

Initial Capital Letters

Initial capital letters are the use of uppercase letters at the beginning of sentences or for proper nouns, helping to denote the start of sentences or significance of particular words.