What is the long-run result of government intervention in response to a recession?
A) The same level of output at higher prices
B) A higher level of output at higher prices
C) A higher level of output at lower prices
D) A lower level of output at the same prices

Question

Quizplus · Accepted Answer

Government intervention in response to a recession, such as fiscal stimulus, often leads to a recovery in output but can also result in higher prices due to increased demand and potential inflationary pressures.

What Is the Long-Run Result of Government Intervention in Response