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In 2008 the United States fell into a major recession. There was a debate in Congress as to whether or not they should have responded to the recession.

If Congress had chosen to not enact any policy, in the absence of any additional shocks, the Keynesian model would have predicted that eventually (i.e. in the long run) output would
Select Option increase until it returns to the natural rate of outputincrease, but not reach the natrual rate of outputdecrease even morestay the same
, prices levels would
Select Option increasedecreasestay the same
, and interest rates would
Select Option increasedecreasestay the same
.
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