Research on the effects of recessions on the real level of GDP shows that
A. recessions cause only temporary reductions in real GDP, which are offset by growth during the expansion phase.
B. recessions cause both temporary and permanent declines in real GDP, but most of the decline is temporary.
C. recessions cause both temporary and permanent declines in real GDP, but most of the decline is permanent.
D. recessions cause large, permanent reductions in the real level of GDP.
Answer: B
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For how long is the chairman of the board of governors of the Fed appointed and by whom?
a. Appointed for two years by all the other governors b. Appointed for two years by the governor of the New York district branch c. Appointed for two years by the president of the United States d. Appointed for four years by all the other governors e. Appointed for four years by the president of the United States
You have a choice among three options. Option 1: receive $900 immediately. Option 2: receive $1,200 one year from now. Option 3: receive $2,000 five years from now. The interest rate is 15 percent. Rank these three options from highest present value to lowest present value
a. Option 1; Option 2; Option 3 b. Option 3; Option 2; Option 1 c. Option 2; Option 3; Option 1 d. Option 3; Option 1; Option 2
In a speech in 2009, President Barack Obama made the following observations: "I know that for many, the face of globalization is contradictory...Trade can bring new wealth and opportunities, but also huge disruptions and change in communities." How does trade bring "new wealth and opportunities"?
A. Countries that are more open to foreign trade and investment are more likely to receive foreign direct investment (FDI) B. Countries that are more open to foreign trade and investment are more likely to receive foreign portfolio investment C. Countries that are more open to foreign trade and investment experience wars and revolutions, which increase military contracts and military spending D. Countries that are more open to foreign trade and investment experience low rates of saving and investment E. A and B only
Generally, in economics we study how people
a. react to changes in government policy. b. make choices when resources are scarce. c. react to rising prices. d. get increases in income.