If the Government Does Not React to a Recession

question 101

Multiple Choice

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)None of these is true.

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Definitions:

Three-Fifths Compromise

An agreement made during the 1787 Constitutional Convention stating that three-fifths of the enslaved population would be counted for determining taxation and representation in Congress.

Philadelphia Convention

The gathering in 1787 where the Constitution of the United States was framed and adopted by its original colonies.

Elastic Clause

Also known as the Necessary and Proper Clause, part of the U.S. Constitution allowing Congress to pass laws deemed necessary and proper for executing its enumerated powers.

Supremacy Clause

The Supremacy Clause is a provision in Article VI of the U.S. Constitution establishing that federal law takes precedence over state laws and constitutions when they are in conflict.