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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As the real wage increases, the opportunity cost of working outside the home increases
a. True b. False
The common currency of the Economic Monetary Union is the
a. franc. b. pound. c. euro. d. mark.
Which of the following was not one of the likely causes of the productivity problem of the 1970s?
A. an increase in research and development spending B. a reduction in government regulation C. rapid growth in investment spending D. all of the above
You hold an FDIC insured savings account at your neighborhood bank. Your current balance is $275,000. If the bank fails you will receive:
A. $125,000. B. $250,000. C. $275,000. D. $100,000.