Economist A says that the economy is self-regulating. This economist most likely believes that
A) the economy can get stuck in a recessionary gap.
B) wages and prices are inflexible downward.
C) wages and prices are flexible.
D) government should enact expansionary fiscal policy when the economy is in a recessionary gap.
E) none of the above
C
Economics
You might also like to view...
The negative of the slope of the isoquant indicates the ___________________________
Fill in the blank(s) with the appropriate word(s).
Economics
Which of the following do not suffer the costs of inflation?
A) firms that have to devote more time and labor to raising prices B) persons on fixed incomes C) persons whose incomes rise more rapidly than inflation D) an investor that has to pay higher taxes because of the inflation
Economics