(Last Word) Which of the Following Statements Best Represents Economists’

Multiple Choice

(Last Word) Which of the following statements best represents economists’ predictions about recovery from the Great Recession?

A) Recovery would occur quickly because of continued rapid advances in technology.
B) Recovery would take longer than usual because the recession was preceded by a credit bubble.
C) Recovery of output growth would be rapid, but employment growth would be slow.
D) Bursting of the credit bubble would facilitate recovery by creating greater price flexibility.