Advocates for a structural solution to the Great Recession argued that:

A. government should cut taxes across the board to stimulate demand for goods and
services.
B. firms should be allowed to go bankrupt, allowing the economy to correct for resource
misallocations.
C. firms in financial distress should be taken over by the government and run for the public
good.
D. massive public works projects should be implemented to produce public capital, keep
people employed, and help workers maintain job skills.


Answer: B

Economics

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