Recessions are always caused by negative demand shifts.
Answer the following statement true (T) or false (F)
False
Recessions can have different triggers. Of the last six recessions, only the recession of 2001 was caused by a negative demand shift.
You might also like to view...
Which of the following statements about checking deposits is true?
A) It is a liability for both households and banks. B) It is an asset for both households and banks. C) It is an asset for households but a liability for a bank. D) It is a liability for households but an asset for a bank.
In a two-period model with production, a decrease in the world real interest rate
A) increases the current account surplus and increases real output. B) reduces the current account surplus and increases real output. C) increases the current account surplus and reduces real output. D) reduces the current account surplus and reduces real output.
What does international voluntary trade do?
(a) Exploits small countries (b) Benefits all trading partners (c) Places labor unions at an unfair disadvantage (d) Forces productive domestic firms to close their doors
Most demand curves are relatively elastic in the upper-left portion because the original price:
A. and quantity from which the percentage changes in price and quantity are calculated are both large. B. and quantity from which the percentage changes in price and quantity are calculated are both small. C. from which the percentage price change is calculated is small and the original quantity from which the percentage change in quantity is calculated is large. D. from which the percentage price change is calculated is large and the original quantity from which the percentage change in quantity is calculated is small.