(Consider This) the U

question 84

Multiple Choice

(Consider This) The U.S.recession that occurred in 2008 and 2009 represented a case where

• A)government policy intervention effectively offset the negative demand shock and minimized the effects on output and employment.
• B)prices were somewhat flexible, so the impact of the demand shock was felt about the same in terms of price and output changes.
• C)prices were relatively flexible, minimizing the impact on total output and employment.
• D)prices were relatively sticky and most of the impact was on total output.