An economy that self-corrects a recessionary gap will experience falling nominal wages,rising real wages,and falling output.

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An economy that self-corrects a recessionary gap will see rising nominal wages, rising real wages, and rising output. This is because as prices fall during a recession, nominal wages eventually adjust downward to reflect this, but real wages can still rise if prices fall faster than wages. This encourages increased production and higher levels of output.

An Economy That Self-Corrects a Recessionary Gap Will Experience Falling