Economist B believes that the economy can get stuck in a recessionary gap.This economist most likely believes that

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Economist B believes that the economy can get stuck in a recessionary gap, which means that wages and prices are inflexible downward, preventing the economy from adjusting to the equilibrium level. This suggests that the economy may need some intervention such as fiscal or monetary policies to restore equilibrium. Option A is incorrect because if wages and prices were flexible, the economy would have self-corrected back to equilibrium. Option C is partly correct, but it is a potential remedial action rather than a belief. Option D is incorrect because Economist B does not believe that the economy is self-regulating, considering the possibility of a recessionary gap. Option E is incorrect because an option should be the best fit.

Economist B Believes That the Economy Can Get Stuck in a Recessionary