The 2007–2008 recession in the United States appears to have been the product of ______.
a. negative shocks to both supply and demand
b. positive shocks to both supply and demand
c. a negative shock to supply coupled with a positive shock to demand
d. a positive shock to supply coupled with a negative shock to demand
a. negative shocks to both supply and demand
You might also like to view...
Under the IMF fixed exchange rate system, a nation running a balance of payments deficit would have an excess __________ its currency in the foreign exchange market and that nation's central bank would have to __________ some of its currency to
maintain the fixed exchange rate. A) supply of; buy B) supply of; sell C) demand for; buy D) demand for; sell
Suppose Bella had entered into a contract to rent Michelle's apartment for one year. The contract mentioned that if either of the two parties breached it, the other was to recover her loss. If Michelle breaches the contract, a payment which leaves Bella no worse off than if the contract was honored, is called opportunistic damage
Indicate whether the statement is true or false
Most economists believe that the classical model is the appropriate model for analysis of the economy in the
a. long run, because evidence indicates that money is not neutral in the long run. b. long run, because real and nominal variables are essentially determined separately in the long run. c. short run, because money is neutral in the short run. d. short run, because real and nominal variables are not highly intertwined in the short run.
Economist B says all of the following: Expansionary fiscal policy is needed to raise aggregate demand and remove the economy from a recessionary gap. The choice of fiscal policy measures is between more government spending and a ___________ in taxes. Since I am in favor of smaller government, I choose a __________________ in __________________
A) rise; decrease; government spending B) rise; cut; taxes C) decrease; rise; government spending D) decrease; cut; taxes E) none of the above