The Economy Is Currently in a Recession Due to a Reduction

Multiple Choice

The economy is currently in a recession due to a reduction in consumer confidence.Output and the real interest rate are below their levels prior to the recession.Six months later the economy has returned to its equilibrium level of output and the previous interest rate.Which of the following must have happened?

A) The government did not intervene in the economy.
B) The government increased the money supply.
C) The government decreased the money supply.
D) The government increased purchases of goods.