How does the size of the 2007–2009 recession compare with the Great Depression of the 1930?
What will be an ideal response?
The recession of 2007–2009 was quite severe because real output dropped by 3.7 percent, but this drop does not compare with the 27 percent decline in real GDP over a three-year period during the Great Depression of the 1930.
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Suppose that the price of flour used to produce bagels increases. Hence the equilibrium price of a bagel ________ and the equilibrium quantity ________
A) rises; increases B) does not change; does not change C) falls; increases D) rises; decreases E) falls; decreases
When money demand shifts, the Fed must choose between targeting the money supply and targeting the interest rate; it cannot target both
a. True b. False Indicate whether the statement is true or false
In a dual economy with limited currency convertibility:
A. neither the traditional nor the international sector tends to be dollarized. B. only the traditional sector tends to be dollarized. C. only the international sector tends to be dollarized. D. both the traditional and international sectors tend to be dollarized.
The baby boomer generation is just starting to retire, and waiting lists to get into nursing homes are on the rise. We could reasonably expect the demand for geriatric care to:
A. increase due to expectations of future prices. B. decrease due to the number of buyers increasing. C. decrease due to expectations of future prices. D. increase due to the number of buyers increasing.