How Will a Recession End If an Economy Is Left

question 88

Multiple Choice

How will a recession end if an economy is left to self-correct?

• A) Taxes eventually will rise, which gives the government more spending power.
• B) Taxes eventually will fall, which leads to an increase in aggregate demand.
• C) Sticky wages eventually will fall, which allows labor markets to return to equilibrium and full employment.
• D) Sticky wages eventually will rise, which leads to an increase in aggregate demand.

---

Definitions:

Fixated

In psychology, an obsessive focus or attachment to an idea, person, or object, often at the expense of more useful or adaptive behaviors.

Sexual Abuse

An undesired sexual act by one person upon another, often using coercion or without the consent of the victim.

Sexual Fantasies

Imagined sexual thoughts or desires that can enhance or precede sexual arousal, often incorporating scenarios or behaviors not experienced in reality.

Psychological Problems

Mental health issues or disorders that affect a person's thinking, feeling, behavior, or mood.