Mainstream economists think that:
A. Market participants change their actions in response to anticipated price-level changes such that no change in real output occurs
B. The economy self-corrects when unanticipated events divert it from its full-employment level of real output
C. The downward inflexibility of wages and prices may leave the economy stuck in a costly recession for long periods
D. Significant changes in technology and resource availability cause macroeconomic instability
C. The downward inflexibility of wages and prices may leave the economy stuck in a costly recession for long periods
You might also like to view...
A corporation has legal status like an individual citizen.
Answer the following statement true (T) or false (F)
The fact that not everyone places all of his/her savings in U.S. Treasury bonds indicates that:
A. most investors are not risk averse. B. most people are risk-neutral. C. many investors are actually risk seekers. D. even risk-averse people will take risk if they are compensated for it.