When the housing bubble popped, the effect of the negative demand side shock and the negative supply side shock were the same on:
A. output, causing it to definitely decrease.
B. prices, causing them to definitely rise.
C. output, causing it to definitely increase.
D. prices, causing them to definitely fall.
Answer: A
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When a product's price increases from $800 to $1,200, the quantity demanded decreases from 11,000 to 9,000 . Based on this information, the price elasticity of demand (in absolute terms) is estimated to be equal to: a. 0.5
b. 2.0. c. 0.25. d. 4.0.
International capital mobility:
A. contributes to the rigidity of exchange rates. B. eliminates arbitrage opportunities. C. contributes to the equalization of expected returns across countries. D. makes interest rates equal across countries.
(Select the best answer): The introduction of hybrid varieties of corn had a major influence in:
a. Increasing population density b. Increasing land in production c. Increasing yields per unit land d. Increasing agricultural trade
If the price of housing increases dramatically, then the CPI......
What will be an ideal response?