Explanations about what caused the Great Recession differ sharply among economists. The so-called Minsky Explanation involves the following factors, except:
A.
A massive euphoric bubble in housing prices that eventually burst
B.
A huge negative demand shock in the economy
C.
Flexible average price level in the economy
D.
Excessive access to home-mortgage loans
C.
Flexible average price level in the economy
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Refer to Figure 6.1. At which point on the total product curve is the average product of labor the highest?
A) point A. B) point B. C) point C. D) point D. E) none of the above
If the price of labor increases, the typical perfectly competitive firm in the short run will
A) produce more output. B) hire less labor. C) hire the same labor and produce the same output. D) hire more labor.
If real income increases by 4 percent and the price level increases by 3 percent, nominal income must:
A. increase by 1 percent. B. decrease by 7 percent. C. decrease by 1 percent. D. increase by 7 percent.
Refer to Figure 17-2. At which point is the unemployment rate equal to the natural rate of unemployment?
A) A B) B C) C D) There is insufficient information on the graph to answer this question.