Figure 24-1
-In Figure 24.1 the shift of the aggregate supply curve from AS1 to AS2 and the following shift back to AS1 is called ________.
A) a self-correcting mechanism
B) a self-fulfilling prophecy
C) a self-adjusting mechanism
D) a long-run correcting mechanism

Question

Figure 24-1 
-In Figure 24.1 the shift of the aggregate supply curve from AS1 to AS2 and the following shift back to AS1 is called ________.
A) a self-correcting mechanism 
B) a self-fulfilling prophecy 
C) a self-adjusting mechanism 
D) a long-run correcting mechanism

Quizplus · Accepted Answer

The shift from AS1 to AS2 and back to AS1 is called a self-correcting mechanism, where the economy naturally returns to its long-term equilibrium without external intervention.

Figure 24-1 -In Figure 24.1 the Shift of the Aggregate Supply Curve