Figure 33-2

-Given the situation in graph (1) in Figure 33-2, what movement would be expected in graph (2) from the economy's self-correcting mechanism?
A)A to B
B)A to D
C)C to E
D)D to C

Question

Figure 33-2
​ 
-Given the situation in graph (1) in Figure 33-2, what movement would be expected in graph (2) from the economy's self-correcting mechanism?
A)A to B 
B)A to D 
C)C to E 
D)D to C

Quizplus · Accepted Answer

C to E represents the economy's self-correcting mechanism from a recessionary gap to full employment, where aggregate demand increases to close the gap.

Figure 33-2 ​

Figure 33-2