A prominent aspect of the recent Great Recession, but not of the Great Depression of the 1930s, is ________
A) bank panics
B) mortgage defaults
C) an increase in the credit spread
D) nonconventional monetary policy
D
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How does the production possibilities frontier illustrate opportunity cost?
What will be an ideal response?
If aggregate demand falls short of current output, business firms will ________ production to ________ inventories
A) cut; keep from accumulating B) expand; keep from accumulating C) cut; build up D) expand; build up
The name given to government programs implemented to prevent or shorten recessions and counteract inflation is
a. supply-side economics. b. contractionary policy. c. monetary policy. d. stabilization policy.
E. Carey Brown, an MIT economist, studied government deficits during the Great Depression and found that even though actual deficits were large, the structural deficit changed very little. Which of the following statements is consistent with this finding?
a. Fiscal policy did not work during the Depression. b. Fiscal policy made the Depression worse. c. Fiscal policy was not tried during the Depression. d. Fiscal policy improved the economy during the Depression.