Economists are sharply divided over how to best fight the Great Recession. A vocal minority of economists favor the "Structural Solution," arguing that the economy needs to undergo some structural adjustments and:
A) Relying on the invisible hand of the market to reallocate resources, by letting weak firms die out quickly
B) Government taking serious actions to increase the total demand for output in the economy
C) Fixing prices so that consumers can afford the basic stuff they need, and also to control inflation
D) Setting up social programs and welfare structures, to help out those who are suffering most from the recession

Question

Quizplus · Accepted Answer

The Structural Solution argues that allowing weak firms to die out quickly will reallocate resources more efficiently, ultimately leading to a stronger and more sustainable economy. This approach focuses on addressing underlying structural issues, rather than just temporarily boosting demand through government intervention.

Economists Are Sharply Divided Over How to Best Fight the Great