Conservatives and Keynesians Differ on the Appropriate Response of the Government

Multiple Choice

Conservatives and Keynesians differ on the appropriate response of the government to a recession. Which of the following is a true statement?

A) Conservatives believe the economy will not recover from an outside shock without government assistance.
B) Conservatives believe the economy will automatically adjust to an outside shock.
C) Conservatives believe there is no such thing as an outside shock.
D) Conservatives believe that governments can prevent an outside shock.