Long-Run Self-Adjustment
AP Macroeconomics · Flashcards
AP MACROECONOMICS · FLASHCARDS
Card 1
of 38
0 got it
0 to review
Current
Got it
Still learning
Not seen
QUESTION
How do expectations of future prices affect long-run self-adjustment?
QUESTION
What happens to the economy if wages are perfectly flexible?
QUESTION
What role do flexible prices play in long-run self-adjustment?
Tap to flip before you grade
ANSWER
They help restore full employment equilibrium. Prices adjust to eliminate output gaps and restore potential GDP.
Swipe → got it · swipe ← still learning
Got it
Still learning
Flip Card
Previous card
Next card