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Does the economy have a self-correcting mechanism that

Does the economy have a self-correcting mechanism that works without any intervention by the government? If there is explain how it works. Why is said that the self-correcting mechanism works well only when prices (prices of resources such as labor and capital) are flexible (could move up or down without out any hindrance)?

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Macroeconomics: Does the economy have a self-correcting mechanism that

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