If an unanticipated reduction in aggregate demand throws a market economy into a recession,
A) market forces will cause the economy to spiral downward and a lengthy period of depressed conditions is the expected result.
B) lower real resource prices and interest rates will act as a stabilizing force and direct the economy back to its full employment potential.
C) higher real resource prices and interest rates will help to direct a market economy back to its full employment potential.
D) the natural rate of unemployment will rise until it is once again equal to the actual rate of unemployment.
Correct Answer:
Verified
Q52: A large grain crop resulting from favorable
Q53: When an economy is temporarily operating at
Q54: Which of the following will most likely
Q55: The stability of consumption over the business
Q56: When the output of an economy exceeds
Q58: If an unanticipated decrease in aggregate demand
Q59: When output is greater than the economy's
Q60: If an economy operates at a short-run
Q61: A rise in the price of oil
Q62: Which of the following was a contributing
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents