Question

Economists were sharply divided over how to best fight the Great Recession. A vocal minority of economists favored the "Structural Solution," arguing that the economy needs to undergo some structural adjustments and that government should, therefore_________

Answer 1

Answer:

rely on the invisible hand of the market to reallocate resources,

Explanation:

The invincible hand was adams Smith's idea which is defined as an observable market force that helps the demand and supply of goods in a free market to attain equilibrium naturally without government intervention in the market thereby leaving the people alone to buy and sell freely among themselves . This would naturally choose type of goods to be produced and reduce resource waste by closing Down weak markets that produce less demanded products.

Answer 2

Answer:

rely on the invisible hand of the market to reallocate resources, by letting weak  firms die out quickly.

Explanation:

The financial crisis brought about a real crisis and led to the Great Recession. Some economists were of the opinion during this period that stabilization from the government would not be enough to recover and rebalance from the crisis. Hence they called for some structural adjustments to be made, which ensured that the government kept a blind eye to the recession problem by not helping smaller firms, rather they should allow the invisible hand of the market to be at work and reallocate resources in such a way that the weak organizations would die a natural death quickly.