Which of the following is not consistent with a self-correcting ...

[gonzo233]

Which of the following is not consistent with a self-correcting economy?
 a. Falling wages that correct a recessionary gap
 b. Falling prices that correct a recessionary gap
 c. Rising prices that correct an expansionary gap
 d. Tendency of the short-run aggregate supply to shift until it intersects aggregate demand at potential GDP
  e. An active approach to a recession or depression

Question 2

In the event of a recession, which of the following is the most likely policy stance of those who advocate a passive approach to economic policy?
 a. Cutting taxes
 b. Increasing government spending
  c. Reducing interest rates
 d. Increasing the money supply
 e. Doing nothing

[ankilker]

Answer to Question 1

e

Answer to Question 2

e