Which of the Following Is Not Consistent with a Self-Correcting

question 23

Multiple Choice

Which of the following is not consistent with a self-correcting economy?

• A)Market forces work relatively well in pushing the economy to potential GDP.
• B)Prices and wages are flexible.
• C)A contractionary gap is corrected through falling wages and prices.
• D)The short-run aggregate supply tends to shift until it intersects aggregate demand at potential GDP.
• E)An active approach to a recession or depression.

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Software that manages computer hardware and software resources, providing common services for computer programs.

Used-book Market

A marketplace for the buying and selling of previously owned books, offering an alternative for consumers seeking lower prices or out-of-print titles.

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The financial gains obtained when revenue from business activities exceeds expenses and costs.

Copyright Protection

A legal mechanism that grants the creator of original works exclusive rights to their use and distribution, typically for a limited time.