The Great Recession of 2007-09 illustrated the situation where a negative demand shock occurred and:
A.
Prices adjusted but the output level was inflexible
B.
The economy's overall price level was very flexible
C.
The economy's overall price level was "sticky"
D.
Prices and production were both "sticky" or inflexible
C.
The economy's overall price level was "sticky"
You might also like to view...
If 160 million people are employed, 15 million people are unemployed, and the population is 280 million people, the unemployment rate is
A) 57 percent. B) 62.5 percent. C) 8.6 percent. D) 9.4 percent. E) not possible to calculate without data on the labor force.
Consumers who do not consistently discount the future over time behave in a fashion that is most consistent with ________
A) the theory of intertemporal choice B) the Keynesian theory of consumption C) the permanent income hypothesis D) the life-cycle hypothesis
Adverse selection represents
a. Profitable transaction b. Unconsummated transaction c. Wealth creating transaction d. All of the above
Government rules and regulations can affect
A) market prices. B) the strategy of business. C) the costs of factors of production. D) all of these choices.