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:

Mother-stepfather family

A family structure consisting of a biological mother, her children, and a stepfather, formed after the mother enters a new marital or cohabiting relationship.

Complex stepfamily

A family structure that includes children from previous relationships of both partners, as well as any children they may have together.

Complex stepfamily

A family structure formed when parents remarry or cohabit with new partners, bringing together children from previous relationships, and potentially having new children, creating complex relationships.

Biological children

Offspring to whom parents are genetically related.