The shifts in aggregate demand and aggregate supply as a result of the housing bubble collapse caused output to:
A. fall dramatically immediately.
B. stay the same, since the shifts worked in opposite directions.
C. rise temporarily, then fall.
D. fall at a relatively slow rate over time.
A. fall dramatically immediately.
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Points on a firm's total product curve are
A) both attainable and technologically efficient. B) neither attainable nor technologically efficient. C) attainable but not technologically efficient. D) technologically efficient but not attainable.
In the case of the simple regression model Yi = ?0 + ?1Xi + ui, i = 1, …, n, when X and u are correlated, then
A) the OLS estimator is biased in small samples only. B) OLS and TSLS produce the same estimate. C) X is exogenous. D) the OLS estimator is inconsistent.
The nominal interest rate on a loan with an annual inflation rate of ? and a real interest rate i is represented as:
a. i+?i? b. i+??i? c. i+??i? d. i+?-i?
If the MPC is 4/5, the multiplier is 5/4
a. True b. False Indicate whether the statement is true or false