Most Economists Agree That an Automatic Mechanism Brings the Economy

question 163

Multiple Choice

Most economists agree that an automatic mechanism brings the economy back to potential GDP in the long run.In mid-2011,two years after the recession of 2007-2009 had ended,real GDP in the United States

• A)had returned to potential GDP.
• B)had exceeded potential GDP by 1.5 percent.
• C)remained more than 7 percent below potential GDP.
• D)was predicted to never return to potential GDP.

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Definitions:

Negotiating Tactics

Strategies or methods used to gain an advantageous position during discussions for agreements or disputes.

Personalistic Ethics

A moral framework that emphasizes the importance of human individuals and their values and relationships over abstract principles.

Greatest Good

A principle aimed at achieving the maximum positive impact or benefit for the greatest number of people.

Rules

Guidelines or instructions that dictate how something should be done or what is permissible.