The increased stability of the financial system in the United States since 1950 can help explain
A) why the United States has only experienced one recession since 1950.
B) the severity of the 2007-2009 recession.
C) the increase in the gap between potential GDP and real GDP.
D) the decrease in severity of business cycle fluctuations.
D
You might also like to view...
"A single-price monopoly charges a higher price and produces more output than a perfectly competitive industry." Is the previous statement correct or incorrect? Explain your answer
What will be an ideal response?
Today, Julie attended her 12:30 Economics class. If she hadn't gone to class, Julie would have gone out to lunch with friends. She had other options; she could have worked or slept in. Julie's opportunity cost of going to class is the
A) income from working she gave u
Suppose the economy is at a short-run equilibrium GDP that lies below potential GDP. Which of the following will occur because of the automatic mechanism adjusting the economy back to potential GDP?
A) Unemployment will rise. B) Prices will increase. C) Output will decrease. D) Short-run aggregate supply will shift to the right.
Rick likes to consume Coke or Pepsi. If the marginal rate of substitution of both the goods is constant, Rick's indifference curve is likely to be _____
a. a straight line b. downward sloping c. L-shaped d. U-shaped