The Automatic Adjustment Mechanism That Makes the Economy Move Towards

question 77

Multiple Choice

The automatic adjustment mechanism that makes the economy move towards the long-run Phillips Curve is:

• A) Expansionary fiscal or monetary policy
• B) Inflation expectations and wage adjustments
• C) Contractionary fiscal or monetary policy
• D) Increases in productivity over time

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Definitions:

Securities Exchange Act

Also known as the Securities Exchange Act of 1934, it regulates the trading of securities in the U.S. and established the Securities and Exchange Commission (SEC).

Financial Statements

are formal records of the financial activities and condition of a business, person, or other entity.

Due Diligence Defense

A legal strategy where the defendant shows that reasonable actions were taken to avoid causing harm, used as a defense in civil litigation and regulatory compliance.

Securities Act of 1933

A federal law enacted to ensure more transparency in financial statements so investors can make informed decisions about investments, and to establish laws against misrepresentation and fraudulent activities in the securities markets.