In what ways did the stock market crash of 1929 increase the severity of the downturn?
What will be an ideal response?
It reduced household wealth. It made it more difficult for corporations to raise funds. It increased uncertainty among both households and businesses.
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Consider the demand curves for soft drinks shown in the figure above. Suppose the economy is at point a. Which of the following could result in a movement to point c?
A) a decrease in income B) an increase in the relative price of a soft drink C) a decrease in the relative price of a soft drink D) a decrease in the price of bottled water
Suppose that nominal GDP did not change in 2011, and real GDP decreased, relative to the year 2010 . It can be concluded that: a. total production of goods and services in the economy did not change in 2011. b. the economy experienced deflation during 2011
c. the price level did not change during 2011. d. total production of goods and services in the economy declined during 2011.
A good that has qualities that are easy for a consumer to assess in advance of a purchase is called
A. a credence good. B. a persuasive good. C. an experience good. D. a search good.
In recent years, Head Start spending has grown
A. mainly due to the soaring costs of classroom materials. B. much faster than enrollment. C. on par with enrollment. D. much slower than enrollment.