An economy that self-corrects a recessionary gap will experience ...

[Brittanyd9008]

An economy that self-corrects a recessionary gap will experience falling nominal wages, rising real wages, and falling output.
 a. True
  b. False
  Indicate whether the statement is true or false

Question 2

Both those who favor an active approach as well as those who favor a passive approach to policy believe that the economy can suffer from extreme and long-lasting swings in real GDP.
 a. True
  b. False
  Indicate whether the statement is true or false

[carolinefletcherr]

Answer to Question 1

False

Answer to Question 2

False