Which of the following solutions to recessions came from the short-run macro model?
A) A non-interventionist wait and see solution
B) Increasing taxes
C) Decreasing the federal deficit to jump-start the economy
D) Increasing government spending to jump-start the economy
E) None of the above

Question

Quizplus · Accepted Answer

The short-run macro model suggests that increasing government spending can help jump-start the economy during a recession. This is because it can increase aggregate demand and stimulate production. Choices A, B, and C do not come from the short-run macro model.

Which of the Following Solutions to Recessions Came from the Short-Run