Economists are sharply divided over how to best fight the Great Recession. The majority of economists favor the "Stimulus Solution," which involves:
A) Relying on the invisible hand of the market to set things right
B) Government actions to increase the total demand for output in the economy
C) Making prices become more flexible so that equilibrium can be attained once more
D) Stimulus from abroad through international trade and treaties

Question

Quizplus · Accepted Answer

The "Stimulus Solution," which involves government actions to increase total demand for output in the economy, is the favored approach by the majority of economists to fight the Great Recession. This involves government spending on infrastructure projects, tax cuts, and other measures to increase the purchasing power of consumers and businesses, which in turn stimulates economic growth. The other options presented are not supported by the majority of economists as effective ways to fight the recession.

Economists Are Sharply Divided Over How to Best Fight the Great