The fact that an economy always returns to the natural rate level of output is known as
A) the excess demand hypothesis.
B) the price-adjustment mechanism.
C) the self-correcting mechanism.
D) the natural rate of unemployment.
C
Economics
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What kind of relationship appears to actually exist, if one examines the actual data regarding the inflation rate and the unemployment rate for all years since 1953?
A) a direct relationship B) a one-to-one relationship C) an inverse relationship D) no relationship in the long run
Economics
The idea that higher prices reduce the purchasing power of financial assets and lead to less consumption and more saving is known as the
a. real wealth effect b. interest rate effect c. foreign purchases effect d. income effect e. aggregate demand effect
Economics