Figure 17-3

-Given the situation in graph (1) in Figure 17-3, what movement would be expected in graph (2) from the economy's self-correcting mechanism?

Name: Figure 17-3 -Given the situation in graph (1) in Figure 17-3, what movement would be expected in graph (2) from the economy's self-correcting mechanism?
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Question

Figure 17-3
 
-Given the situation in graph (1) in Figure 17-3, what movement would be expected in graph (2) from the economy's self-correcting mechanism?

Quizplus · Accepted Answer

The economy is in a recessionary gap in graph (1), so the self-correcting mechanism would move the economy to point B in graph (2), where there is full employment.

Figure 17-3 -Given the Situation in Graph (1) in Figure 17-3, What