How did international policy coordination contribute to the avoidance of an economic depression in 2008 - 2010?
What will be an ideal response?
The shadow banking system had become an important source of liquidity in the global economy prior to the crisis. The discovery that collateral was worth far less than it had seemed caused a dramatic reduction in credit everywhere. While central banks and governments sought primarily to aid their own economies, the effectiveness of their interventions was increased by the demonstration that no single economy would be expected to bear alone the burden of restoring liquidity and reducing uncertainty. Rather, the recovery of each economy would be supported by the containment of financial collapse and the recovery of aggregate demand in all affected economies.
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Which of the following statements is false?
A) People who live in cities with good weather receive that benefit for free. B) People who own property in cities with good weather receive higher rents, ceteris paribus. C) Housing prices are higher in cities with better weather, ceteris paribus. D) The demand for housing is higher in cities with good weather, ceteris paribus.
A year-long drought that destroys most wheat crops for the season would shift the:
A. short-run aggregate supply curve only. B. aggregate demand curve only. C. aggregate demand curve, and the short-run aggregate supply curve would shift in response. D. short-run aggregate supply curve and the long-run aggregate supply curve.
An industry in which there are five firms each accounting for 20 percent of the market has an HHI of 2,000.
Answer the following statement true (T) or false (F)
What is the largest possible loss that is consistent with a firm producing in a perfectly competitive market in long-run competitive equilibrium?
a. An amount equal to (price less average variable cost). b. An amount equal to total variable. c. Zero. d. An amount equal to total fixed cost.