Yes they do. In an inflationary gap the equilibrium with the aggregate demand and the short run aggregate supply curves is higher than the long run aggregate supply curve. Eventually, the short run aggregate supply curve will slowly move to the left towards equilibrium. Output in an inflationary gap cannot be held up. This is not usually allowed, usually monetary and fiscal policies work to move the aggregate demand. In a recessionary gap, the opposite will happen. The short run aggregate supply curve will move to the right slowly towards equilibrium because the natural rate of unemployment is higher than the actual rate of unemployment so people will be willing to work for less.
The automatic process in which the aggregate market eliminates a recessionary gap created by a short-run equilibrium that is less than full employment through decreases in wages (and other resource prices). The self-correction mechanism is triggered by short-run resource market imbalances that are closed by long-run price flexibility. The self-correction process of the aggregate market also acts to close an inflationary gap with higher wages (and other resource prices).
the process in which dis equilibrum come to equilibrume
Controls the price fluctuation.
Price is the rationing mechanism. Whoever can afford it, will by it.
Price mechanism (A+)
The automatic process in which the aggregate market eliminates a recessionary gap created by a short-run equilibrium that is less than full employment through decreases in wages (and other resource prices). The self-correction mechanism is triggered by short-run resource market imbalances that are closed by long-run price flexibility. The self-correction process of the aggregate market also acts to close an inflationary gap with higher wages (and other resource prices).
the process in which dis equilibrum come to equilibrume
Controls the price fluctuation.
market economies use price mechanism to sove the prolems of economic choce .mixed economies also do the same facilitated by government interventions .
Watch Case, crown, lugs, mirror, bottom,movement.answer 2 A power source (battery, spring);a mechanism for keeping uniform time;A means of displaying the time;Some means of correcting the displayed time.
process is process and mechanism is mechanism.
mechanism. mechanism.
What is a defense mechanism
mechanism. mechanism.
Special type of protection mechanism to save from the predator protection mechanism
Law + tools = Mechanism
What is technology in market mechanism?