The 1973-1975 recession was caused by
A) the Fed's easy monetary policy.
B) the Fed's tight monetary policy.
C) business pessimism about investment caused by high tax rates on capital.
D) the quadrupling of oil prices by OPEC.
D
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In Figure 5-2, consumer’s surplus is measured by the area
A. ABC. B. OBCD. C. OACD. D. DCE.
When aggregate expenditure is less than GDP, which of the following is true?
A) There was an unplanned increase in inventories. B) Households bought more new homes than they anticipated. C) Firms spent more on capital goods than they anticipated. D) All of the above must be true when aggregate expenditure is less than GDP.
If the actual price level is lower than the expected price level, the economy will contract in the short run
a. True b. False Indicate whether the statement is true or false
A firm has a fixed cost of $500 in its first year of operation. When the firm produces 100 units of output, its total costs are $3,500 . When it produces 101 units of output, its total costs are $3,750 . What is the marginal cost of producing the 101st unit of output?
a. $250 b. $275 c. $340.91 d. $350