How the self-correcting mechanism will direct output


Problem

When current output is less than full-employment capacity, explain how the self-correcting mechanism will direct output toward the economy's long-run potential. Can you think of any reason that this mechanism might not work? Discuss.

The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.

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Microeconomics: How the self-correcting mechanism will direct output
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