If the Economy Is Self-Regulating,then It Follows That

question 66

Multiple Choice

If the economy is self-regulating,then it follows that

• A) recessionary and inflationary gaps are temporary economic states.
• B) wages will fall when the economy is in a recessionary gap.
• C) wages will rise when the economy is in an inflationary gap.
• D) the economy is always in long-run equilibrium.
• E) a,b and c

---

Definitions:

Sediment Variety

Sediment variety encompasses the different types of mineral and organic particles deposited by water, wind, or ice, including sand, silt, clay, and pebbles.

Angular Blocks

Fragments of rock with sharp edges that have been broken off a larger mass by processes such as faulting or erosion.

Rock Powder

Finely ground rock that can be used as a soil amendment to provide minerals and nutrients for plant growth.

Sand

A grain or rock fragment smaller than 2 mm and larger than 1/16 mm.