Author Question: When the federal government makes no attempt to take corrective action, markets return a recessed ... (Read 54 times)

WWatsford · **on:** Jun 30, 2018

When the federal government makes no attempt to take corrective action, markets return a recessed economy to full employment levels of production by

(a) laying off workers.
(b) lowering wages.
(c) dropping prices.
(d) doing all of the above.

Question 2

The monetarists believe that the LM schedule

a. and the IS schedule are both steep.
b. is flat while the IS schedule is steep.
c. and the IS schedule are both quite flat.
d. is steep and the IS schedule is relatively flat.