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

question 120

Multiple Choice

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

• A)Falling wages that correct a recessionary gap
• B)Falling prices that correct a recessionary gap
• C)Rising prices that correct an expansionary gap
• D)Tendency of the short-run aggregate supply to shift until it intersects aggregate demand at potential GDP
• E)An active approach to a recession or depression

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Definitions:

High Risk

Indicates a situation or activity that involves a significant chance of loss, harm, or failure.

Reinforcing

Strengthening a behavior by providing a consequence that increases the likelihood of the behavior being repeated.

Construct System

A psychological framework used to understand and interpret the world, unique to each individual.

Range of Convenience

The scope or area within which a particular activity, concept, or object is considered appropriate, useful, or accessible.