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
In 2008, the U.S. economy suffered a gaping wound as several trillion dollars were ripped out of it.
This chart illustrates the four quadrants in which we can place the relationships between the state
Eels - Can't Help Falling In Love
Creating a Continental Economy
Migration and Global Economy
A Tough Economy ...for students