Figure 10-5
-According to Baumol and Blinder, does the U.S.economy have a self-correcting mechanism?
A)No, there is no such thing in reality.
B)Yes, and it works very rapidly.
C)Yes, and it works very slowly.
D)No, unless the aggregate supply curve is perfectly flat.

Question

Figure 10-5 
-According to Baumol and Blinder, does the U.S.economy have a self-correcting mechanism?
A)No, there is no such thing in reality. 
B)Yes, and it works very rapidly. 
C)Yes, and it works very slowly. 
D)No, unless the aggregate supply curve is perfectly flat.

Quizplus · Accepted Answer

According to Baumol and Blinder, the self-correcting mechanism in the U.S. economy exists but works very slowly.

Figure 10-5 -According to Baumol and Blinder, Does the U.S.economy Have a U.S.economy