The combined efforts of the Fed and the Treasury in response to the financial crisis following the housing market crash were:
A. ineffective in restoring aggregate supply to its pre-crisis level, but output increased due to increased consumer confidence boosting aggregate demand.
B. effective in restoring aggregate supply to its pre-crisis level, but left the economy facing severely increasing inflation.
C. ineffective in restoring aggregate supply to its pre-crisis level, and output remained far below potential.
D. effective in restoring aggregate supply to its pre-crisis level, but still left the economy with sluggish aggregate demand.
Answer: D
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Isoquant lines represent ________ whereas isocost lines represent ________
A) technical efficiency; economic efficiency B) economic efficiency; technical efficiency C) economic efficiency; marginal costs D) input tradeoffs; economic tradeoffs
Which of the following is NOT correct?
a. Many economist oppose increases in how much people save. b. Saving is an important long-run determinant of a nation's standard of living. c. A change in tax laws that encouraged greater saving would lower interest rates. d. Taxes on interest income can substantially decrease the future value of current saving.
Give an example of a trade-off faced by society
The largest source of unemployment is
A) re-entrants to the labour force. B) job losers. C) involuntary part-time workers. D) job leavers. E) entrants to the labour force.