The main effect on the economy of the financial sector crisis in late 2008 was
A. reduced aggregate supply.
B. increased aggregate demand.
C. reduced aggregate demand.
D. increased aggregate supply.
Answer: C
You might also like to view...
Refer to the above figures. A unit tax of $2 has been levied on a good. Which of the panels depict the effect of the taxes?
A) Panel 1 B) Panel 2 C) Panel 3 D) None of the diagrams reflect the effect of the tax.
Transfer payments are money received as grants from government
a. True b. False Indicate whether the statement is true or false
Mutual funds are a type of financial intermediary
a. True b. False Indicate whether the statement is true or false
Two firms, Acme and FirmCo, have access to five production processes, each of which has a different cost and gives off a different amount of pollution. The daily costs of the processes and the corresponding number of tons of smoke emitted are shown in the table below.Process(smoke/day) A(10 tons/day) B(8 tons/day) C(6 tons/day) D(4 ton/day) E(2 tons/day) Cost to Acme ($/day) $750$800$1,000$1,400$2,000 Cost to FirmCo ($/day) $500$750$1,200$2,200 $4,000If pollution is unregulated, the two firms will produce using process ________, and a total of ________ tons of smoke will be emitted each day.
A. C; 12 B. D; 4 C. A; 20 D. B; 16