QUESTION 1 Prior to the Great Depression, the dominant economic view held that fiscal policy could effectively eliminate a recessionary gap and return the economy to its potential output. economies should be able to reach full employment through a process of self-correction. monetary policy should be used to move the economy back to its potential output because it was more immediate than fiscal policy. any movement away from potential output was due to either an excess aggregate demand or an excess aggregate supply. 2.5 points QUESTION 2 What is the value of the MPC if the spending multiplier is 10