Why did so many banks sit on their reserves during the financial crisis of 2008–2009?
a. They expected the United States to declare war soon.
b. They were waiting for the stock market to take a plunge.
c. They feared that borrowers would not pay back their loans.
d. They opposed the policies of the presidential administration.
c. They feared that borrowers would not pay back their loans.
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The idea that hysteresis plays a role in macroeconomics implies that
a. monetary policy can have an effect on the natural rate of unemployment. b. workers can overreact to changes in monetary policy. c. stabilization policy is ineffective and counterproductive. d. fiscal policy is ineffective and counterproductive.
If the demand curve for a product was vertical, then the elasticity of demand would be: a. equal to zero
b. equal to one. c. greater than one, but less than infinity. d. equal to infinity.
Productivity is a measure of
A. Output per unit of input. B. Input per dollar of output. C. Input per unit of output. D. Output per dollar of input.
Which of the following statements is CORRECT?
A. When the real wage increases, the labor supply curve shifts leftward. B. None of these statements are correct. C. When the real wage decreases, the labor supply curve shifts leftward. D. When the real wage increases, the labor supply curve shifts rightward.