During the 2007-2009 recession, the consumers in the U.S. economy:
a. consumed less and saved more resulting in a decline in aggregate demand.
b. saved less and consumed more resulting in a decline in aggregate demand.
c. consumed and saved more resulting in an increase in aggregate demand.
d. consumed and saved less resulting in an increase in aggregate demand.
a
You might also like to view...
Starting from long-run equilibrium, a large tax increase will result in a(n) ________ gap in the short-run and ________ inflation and ________ output in the long-run.
A. recessionary; lower; potential B. expansionary; lower; potential C. expansionary; higher; potential D. recessionary; lower; lower
Suppose the quantity of money and real GDP do not change. If velocity increases, then the
A) price level will fall. B) price level will rise. C) inflation rate will fall. D) real interest rate will fall. E) real interest rate will rise.
A capital gain results when
A) an asset is sold for more than it was purchased. B) a debt is settled. C) a person purchases a bond. D) a person buys gold.
Suppose that the nominal money supply equals $2 billion and nominal GDP is $16 billion. Then, according to the equation of exchange, the velocity of money equals 8
a. True b. False Indicate whether the statement is true or false