Which of the Following Would Reduce the Ability of the Self-Correcting

question 96

Multiple Choice

Which of the following would reduce the ability of the self-correcting mechanism to direct an economy out of a recession quickly?

• A) a decrease in the real rate of interest
• B) resource prices that are inflexible in a downward direction
• C) an increase in aggregate demand
• D) a low level of savings

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Definitions:

Organizational Chart

A visual display of the organizational structure, lines of authority (chain of command), staff relationships, permanent committee arrangements, and lines of communication.

Plant Layouts

The arrangement of machinery, equipment, and other industrial facilities within a factory or production site, designed to optimize efficiency and workflow.