Prior to the Great Depression, Most Economists Believed That a Recessionary

Multiple Choice

Prior to the Great Depression, most economists believed that a recessionary downturn would be reversed by

A) higher wages that would stimulate aggregate demand and reduce unemployment.
B) lower wages that would increase the quantity of labor demanded and reduce unemployment.
C) an expansionary monetary policy on the part of the Federal Reserve System.
D) an increase in government spending that would stimulate aggregate demand and employment.