With regard to the business cycle, most modern economists believe that
a. once a recession starts, market forces are incapable of preventing the economy from plunging deeper and deeper into a depression.
b. market economies will experience lengthy periods of recession pretty much regardless of what policy makers do.
c. the economy's self-corrective mechanism will quickly restore full employment regardless of the choices made by policy makers.
d. lower real interest rates and reductions in real resource prices will help direct an economy out of recession.
D
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An indifference curve is a line that shows combinations of goods among which a consumer
A) needs equally. B) does not care which combination he or she receives. C) can afford. D) has readily available.
If a worker is indifferent between a job with a wage of $10 per hour and a job with a wage of $12 per hour, then the
a. higher-paying job has a compensating wage differential of $2 per hour. b. higher-paying job has a compensating wage differential of $12 per hour. c. higher-paying job is intrinsically more attractive than the lower-paying job. d. wage in the higher-paying job must eventually fall due to competition.