Figure 33-3

-Given the situation in graph (1) in Figure 33-3, what movement would be expected in graph (2) from the economy's self-correcting mechanism?

Question

Figure 33-3
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-Given the situation in graph (1) in Figure 33-3, what movement would be expected in graph (2) from the economy's self-correcting mechanism?

Quizplus · Accepted Answer

The economy's self-correcting mechanism would move the economy from point A to point B in graph (2). This is because the economy is currently in a recession (point A), and the self-correcting mechanism will work to bring the economy back to full employment (point B).

Figure 33-3 ​

Figure 33-3