If wages are flexible,it is very likely that government intervention will be needed to push the economy out of a recessionary gap.

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Quizplus · Accepted Answer

If wages are flexible, it means that they can adjust freely based on supply and demand in the labor market. This can help to restore equilibrium in the economy without the need for government intervention. In a recessionary gap, wages may fall naturally as the labor market adjusts to lower demand, which can help to stimulate employment and output. Therefore, flexible wages can be an important part of the self-correcting mechanism of the economy.

If Wages Are Flexible,it Is Very Likely That Government Intervention