The automatic mechanism ________ the price level in the case of ________ and ________ the price level in the case of ________.
A) raises; recession; lowers; expansion
B) lowers; expansion; lowers; recession
C) raises; expansion; raises; recession
D) lowers; recession; raises; expansion
Correct Answer:
Verified
Q201: In the long run
A)GDP = potential GDP.
B)unemployment
Q202: At a long-run macroeconomic equilibrium,real GDP is
Q203: Suppose a recession occurs as a result
Q204: Stagflation occurs when short-run aggregate supply decreases.
Q205: Why does the short-run aggregate supply curve
Q207: Explain how the economy moves back to
Q208: For the recession of 2007-2009,it took _
Q209: Stagflation occurs when inflation _ and GDP
Q210: At a short-run macroeconomic equilibrium,real GDP is
Q211: For the recession of 2007-2009,it took _
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