The economy does have a self-correcting mechanism that tends to eliminate either unemployment or inflation and tends to act slowly and unevenly.

Question

Quizplus · Accepted Answer

This is an accurate statement about the economy's self-correcting mechanism. When unemployment is high, it tends to decrease as the economy adjusts and companies increase hiring. When inflation is high, it tends to decrease as businesses and consumers adjust their spending habits. However, these adjustments can take time and may not be evenly distributed across all sectors of the economy.

The Economy Does Have a Self-Correcting Mechanism That Tends to Eliminate