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. output, causing it to definitely increase.
C. prices, causing them to definitely rise.
D. prices, causing them to definitely fall.
A. output, causing it to definitely decrease.
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Which of the following variables will not cause the market supply curve of labor to shift?
A) a change in the labor participation rate of women B) an increase in the number of people between the ages of 16 and 65 C) increases in population D) a favorable change in consumer tastes
An inefficient allocation of resources or unusually high unemployment: a. causes the production possibilities curve to shift inward
b. causes the production possibilities curve to shift outward. c. can each be illustrated by a point inside the production possibilities curve. d. can each be illustrated by a point outside the production possibilities curve.
In the above figure, the profit-maximizing output and price for this monopolistically competitive firm are
A. 10,000 units at a price of $5 per unit. B. 10,000 units at a price of $10 per unit. C. 12,000 units at a price of $8 per unit. D. 13,000 units at a price of $7 per unit.
In the expansion phase of the business cycle:
What will be an ideal response?