The "No - Markets Fail Often" Camp Argues That in a Recessionary

Multiple Choice

The "No - Markets Fail Often" camp argues that in a recessionary gap, all of the following will happen except,

A) workers resist wage cuts.
B) employers resist wage cuts.
C) falling interest rates increase business investment.
D) falling output creates pessimistic expectations that decrease business investment.
E) destabilizing demand shocks from R.O.W.