If prices are perfectly flexible,the economy will always be growing:

Name: If prices are perfectly flexible,the economy will always be growing:
Brand: Quizplus
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Question

Quizplus · Accepted Answer

If prices are perfectly flexible, any changes in demand or supply will be reflected in prices, leading to an efficient allocation of resources and creating an equilibrium where the economy is producing at its full potential. Therefore, the economy will always be growing at its potential rate.

If Prices Are Perfectly Flexible,the Economy Will Always Be Growing