Which of the following is not correct?
a. The model of aggregate demand and aggregate supply is used by most economists to analyze short-run fluctuations.
b. During a recession firms cut back production and workers are laid off.
c. A recession is a period of declining real incomes and declining unemployment.
d. A depression is a severe recession.
c
You might also like to view...
The Federal Reserve finances its credit policy with
A) reserve deposits that private banks hold with the Fed. B) the insurance premiums collected by the FDIC. C) borrowing from the federal government. D) funding from the U.S. Treasury Department.
A fundamental difference between the command system and laissez-faire capitalism is that, in command systems:
A. the division of output is decided by central planning rather than by individuals operating freely through markets. B. all economic decisions are made by the government, whereas there is no government in laissez-faire capitalism. C. scarcity does not exist, whereas it does in laissez-faire capitalism. D. money is not used, whereas it is in laissez-faire capitalism.
Refer to the information provided in Figure 3.16 below to answer the question(s) that follow.
Figure 3.16Refer to Figure 3.16. When the economy moves from Point C to Point A, there has been
A. an increase in demand and an increase in quantity supplied. B. an increase in quantity demanded and an increase in supply. C. an increase in quantity demanded and a decrease in supply. D. an increase in demand and an increase in supply.
If you shop for a car online and compare car prices across dealerships, money is functioning as a
A) means of payment. B) medium of exchange. C) barter mechanism. D) store of value. E) unit of account.