The first three elements of a financial crisis are correctly represented as taking place in the following order:
a. large decline in some asset prices ? insolvencies at financial institutions ? decline in confidence in financial institutions
b. insolvencies at financial institutions ? decline in confidence in financial institutions ? large decline in some asset prices
c. insolvencies at financial institutions ? economic downturn ? credit crunch
d. insolvencies at financial institutions ? credit crunch ? economic downturn
a
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High levels of inflation ________ the real value of money and, hence, ________ short-run equilibrium output.
A. reduce; increase B. increase; decrease C. increase; increase D. reduce; decrease
An increase in the money wage rate shifts the SAS curve
What will be an ideal response?
A monopolist charges a price that is ________ and produces ________ than a perfect competitor
A) lower; less B) higher; less C) higher; more D) lower; more
In some cases, social regulation may alter individuals' behavior. For example, there is evidence to indicate that as more automobile safety regulations have been introduced, more individuals have begun to drive recklessly. This phenomenon is known as
A. the share-the-gains effect. B. the share-the-pains effect. C. the capture effect. D. the feedback effect.