The Fact That an Economy Always Returns to the Natural

question 15

Multiple Choice

The fact that an economy always returns to the natural rate level of output is known as

• A)the excess demand hypothesis.
• B)the price-adjustment mechanism.
• C)the self-correcting mechanism.
• D)the natural rate of unemployment.

---

Definitions:

Prescription

A direction, usually written, by a qualified health-care professional for the preparation and use of a medicine or remedy.

Grant

To agree to give or allow something requested to someone, often in the context of financial aid, rights, or property.

Real Property

Land and anything permanently attached to it, such as buildings and structures, distinct from personal property or movable possessions.

Tenancy

General term indicating a possessory interest in property. In landlord–tenant law, a property owner’s conveyance to another person of the right to possess the property exclusively for a period of time.