Economist A says that the economy is self-regulating.This economist most likely believes that

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Economist A believes that the economy can adjust itself to reach equilibrium without government intervention. This implies that wages and prices are adaptable to changes in supply and demand, known as flexible wages and prices. Therefore, options A and D are incorrect since they suggest that the government should intervene when the economy is in a recessionary gap. Option B is also incorrect since it assumes that wages and prices cannot easily adapt to changing market conditions.

Economist a Says That the Economy Is Self-Regulating