When the housing bubble popped, the effect of the negative demand side shock and the negative supply side shock were the same on:
A. output, causing it to definitely decrease.
B. prices, causing them to definitely rise.
C. output, causing it to definitely increase.
D. prices, causing them to definitely fall.
Answer: A
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Private property rights imply that people can own things, and they can do what they want with what they own even if they infringe on the private property rights of others
a. True b. False Indicate whether the statement is true or false
The most important automatic stabilizer is: a. open market operations
b. the unemployment compensation system. c. the tax system. d. the welfare system.
In which of the following ways is the private market sector similar to the public sector in terms of decision making?
A. Both sectors may use a type of "force" if necessary. B. There is competition for scarce resource in both sectors. C. Votes by individual voters are basically equal in importance with dollars spent by individuals on goods. D. Prices determine the demand for goods and services in each sector.
Guiseppe Vibrato was so sick of his job that he quit, and now spends his days at the tavern, saying he never wants to work again. Guiseppe is
A) a discouraged worker. B) a discouraged drinker. C) unemployed. D) neither employed nor unemployed.