As a result of the housing-market crash:
A. both aggregate demand and aggregate supply shifted to the left.
B. both aggregate demand and aggregate supply shifted to the right.
C. aggregate demand shifted to the left, and aggregate supply shifted to the right.
D. aggregate demand shifted to the right, and aggregate supply shifted to the left.
A. both aggregate demand and aggregate supply shifted to the left.
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To increase the money supply, the Fed might: a. increase the discount rate and sell bonds in the open market
b. decrease the reserve requirement and buy bonds in the open market. c. increase the reserve requirement and sell bonds in the open market. d. increase the discount rate and lower the reserve requirement. e. sell government securities and increase the discount rate.
The amount of time it takes for fiscal policy to have an impact on the economy creates:
A. an information lag. B. a formulation lag. C. an implementation lag. D. a direction lag.
Which of the following leads to a fundamental difficulty for stabilization policy?
a. Time lags in policy decisions b. Presence of shock absorbers in the economy c. Absence of data on the effectiveness of policy measures d. Existence of self-correcting mechanism
Education is an example of
a. investment in physical capital. b. investment in human capital. c. investment in natural resources. d. technological change. e. none of the above.