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Author Question: If we observe an economy adjusting to potential GDP as prices fall and real output increases, we can ... (Read 154 times)

karateprodigy

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on: Jun 30, 2018
If we observe an economy adjusting to potential GDP as prices fall and real output increases, we can conclude that _____.
 a. the economy was experiencing an expansionary gap
  b. there is a labor surplus
 c. the economy was experiencing a recessionary gap
  d. self-correction is not the process that is occurring
  e. there are widespread labor shortages

Question 2

The reason why self-correction works to close a recessionary gap is because:
 a. a labor shortage causes wages to increase.
  b. a labor surplus causes wages to increase.
  c. a labor shortage causes wages to fall.
 d. a labor surplus causes wages to fall.
 e. a labor surplus causes price to fall.


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jasonq

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Reply #1 on: Jun 30, 2018
Answer to Question 1

c

Answer to Question 2

d


karateprodigy

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Reply 2 on: Jun 30, 2018
:D TYSM

bigsis44

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Reply 3 on: Yesterday
Excellent

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