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. prices, causing them to definitely rise.
C. output, causing it to definitely increase.
D. prices, causing them to definitely fall.
Answer: A
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Assume that a florist can earn an additional $20,000 of revenue each year from advertising once a week on a local television station
What must the additional cost of this once-a-week advertising be to make this advertising economically rational?
The price for tickets of a sold-out event increase by 30% but quantity sold remains unchanged. The price elasticity of demand equals
A) 0. B) 1. C) infinity. D) Cannot be determined.
A monopoly will always sell rather than rent its product
Indicate whether the statement is true or false
Answer the question on the basis of the following information: year nominal GDP price index 1 550 140 2 560 135 3 576 125 4 586 117 5 604 108 In the economy above:
a) the price level is rising faster than nominal GDP. b) nominal and real GDP are growing at the same rate. c) the growth of nominal GDP understates the growth of real GDP. d) the growth of nominal GDP overstates the growth of real GDP.