With Regard to the Business Cycle, Most Modern Economists Believe

Multiple Choice

With regard to the business cycle, most modern economists believe that

A) once a recession starts, market forces are incapable of preventing the economy from plunging deeper and deeper into a depression.
B) market economies will experience lengthy periods of recession pretty much regardless of what policy makers do.
C) the economy's self-corrective mechanism will quickly restore full employment regardless of the choices made by policy makers.
D) lower real interest rates and reductions in real resource prices will help direct an economy out of recession.