According to Gordon, all of the following are important ingredients in the recent U.S. housing bubble EXCEPT
A) low interest rates.
B) saving glut.
C) financial innovation.
D) trade deficit.
D
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Why did high fertility of the early population occur, according to Hughes and Cain (2011)?
(a) More than half of the population were at ages where fertility is high—in 1820, for example, the median American was less than 17 years old. (b) A nation composed mainly of farmers and people planning to farm had every reason to create large families. (c) Children can be considered investment goods and the rate of return on a child born to a farm family was relatively high. (d) High fertility occurred due to all of the above reasons.
Markets are
A) a mechanism through which prices of goods and services are determined by the forces of supply and demand. B) specific geographic locations. C) hypothetical constructs used to analyze how people form their tastes and preferences. D) places where people can inspect goods and services carefully.
Assuming the market is in equilibrium in the graph shown with demand D and supply S1, consumer surplus is:
A. greater than consumer surplus when market is in equilibrium at D and S2.
B. less than consumer surplus when market is in equilibrium at D and S2.
C. the same as consumer surplus when market is in equilibrium at D and S2.
D. zero.
Inflation caused by a rise in the prices of inputs is referred to as:
A. Cost-push inflation B. Demand-pull inflation C. Unanticipated inflation D. Hyperinflation