Which of the following was not a lesson from the 2007-2009 financial crisis?
a. Regulatory failures were the result of weaknesses across the regulatory structure.
b. The financial system operated with too much leverage.
c. The business cycle no longer applies to economic analysis.
d. Monetary policy alone may not be sufficient to stabilize aggregate demand.
c
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An inward shift of a nation's production possibilities frontier can occur due to
A) a natural disaster like a hurricane or bad earthquake. B) an increase in the labor force. C) a change in the amounts of one good desired. D) a reduction in unemployment.
If you believe that government can effectively manage aggregate demand to achieve full employment without inflation, you are a member in good standing in the
a. classical school b. Keynesian school c. neo-Keynesian school d. rational expectations school e. supply-side school
Which of the following helps determine the demand side of the market?
a. consumers who purchase goods b. companies that sell services c. government officials who enforce regulations d. resource owners who sell raw materials
Deficient information on unsafe products can cause:
A. overconsumption of a product. B. underconsumption of a product. C. the government to decide to subsidize a product. D. collusion among firms.