The macropolicy solution to the 2001 recession was substantially easier to implement than in 2008 because

Question

Quizplus · Accepted Answer

In 2001, the government had a surplus and therefore had more fiscal resources to implement macroeconomic policies to combat the recession. However, in 2008, the government had a large deficit which made it difficult to implement policies such as fiscal stimulus without further increasing the deficit. The other options A, B, and D, are not directly related to the feasibility of implementing macroeconomic policies during a recession.

The Macropolicy Solution to the 2001 Recession Was Substantially Easier