Figure 33-8

-In Figure 33-8, which of the following movements reflects the closing of a recessionary gap through the economy's self-correcting mechanism?
A)A to B
B)A to C
C)C to E
D)D to E

Question

Figure 33-8
​ 
-In Figure 33-8, which of the following movements reflects the closing of a recessionary gap through the economy's self-correcting mechanism?
A)A to B 
B)A to C 
C)C to E 
D)D to E

Quizplus · Accepted Answer

The self-correcting mechanism involves the economy moving from a point of recession (D) back to full employment (E) as wages and prices adjust downward, increasing aggregate demand and output.

Figure 33-8 ​

Figure 33-8