The Activists Believe That

Multiple Choice

The activists believe that

A) the time required for flexible prices to bring the economy back to the natural rate of unemployment is relatively short.
B) the IS curve is relatively flat because of the broad range of assets whose demand is very sensitive to changes in the interest rate.
C) the time required for flexible prices to return the economy to the natural level of real GDP is intolerably long.
D) the severity of the Great Depression was primarily related to the large decline in the supply of money.