If the government does not react to a recession:
A) the economy will remain out of its long-run equilibrium indefinitely.
B) the economy will recover, but much more slowly.
C) voters and consumers are likely to be happy with less government interference.
D) the government generally doesn't engage in any policy during a recession.

Question

Quizplus · Accepted Answer

Without any policy intervention, the economy will eventually recover but much more slowly. The government can help to speed up the recovery process and bring the economy back to its long-run equilibrium faster.

If the Government Does Not React to a Recession