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Which is NOT consistent with the idea that an economy's booms and busts can be self-fulfilling prophecies? Question 6 options: A boom is a good
Which is NOT consistent with the idea that an economy's booms and busts can be self-fulfilling prophecies? Question 6 options: A boom is a good equilibrium, and a bust is a bad equilibrium. When households spend a lot, firms tend to produce a lot. An equilibrium occurs when workers underspend and firms overproduce. If households believe firms will cut back on hiring, households cut back on spending
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