can someone comment on this please

Jim says, "I think it's a little like when you have a cold or the flu. You don't need to see a doctor. In time, your body heals itself. That's sort of the way the economy works too. We don't really need government coming to our rescue every time the economy gets a cold." This idea is based around the idea of a self-regulating economy. The book makes the statement directly related to Jim's thought. The economy could catch an illness, being a recessionary or inflationary gap. After catching this "illness" it is able to heal itself with flexible wages. This thought is the basis behind the macroeconomic policy laissez-faire, which means noninterference. If the economy is in a recessionary gap, a surplus in the labor market exists. For the economy to fix itself, the wages will fall and then shift the SRAS curve to the right. ultimately putting the economy back in long-run equilibrium. If the economy is in an inflationary gap, there is a shortage in the labor market. For the economy to fix itself, wages will rise, shifting the SRAS curve to the left, ultimately putting the economy back in long-run equilibrium. Flexible wages are critical to a self-regulating economy