Economists Were Sharply Divided Over How to Best Fight the Great

Multiple Choice

Economists were sharply divided over how to best fight the Great Recession.A vocal minority of economists favored the "Structural Solution," arguing that the economy needs to undergo some structural adjustments and that government should, therefore,

A) rely on the invisible hand of the market to reallocate resources, by letting weak firms die out quickly.
B) take serious actions to increase the total demand for output in the economy.
C) fix prices so that consumers can afford the basic stuff they need and also to control inflation.
D) set up social programs and welfare structures to help out those who are suffering most from the recession.