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

question 80

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 recessionary 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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Definitions:

Auto Insurance

An agreement between an individual and an insurer to cover financial losses related to car incidents.

Insurance Policy

A contract between an individual or entity and an insurance company, outlining the terms and conditions under which the insurer agrees to compensate the insured for specific losses.

Steel Bridge

A steel bridge is a type of bridge that uses steel as its primary construction material, known for its strength, durability, and ability to span long distances.

Contracted

The condition of having entered into a formal agreement, typically enforceable by law.