For the recession of 2007-2009, it took ________ for real GDP to return to its cyclical peak
A) about 18 months
B) about 2 year
C) about 3.5 years
D) almost 5 years
Answer: C
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When the Fed buys a $10,000 bond from a bond dealer
A) reserves of the banking system remain unchanged, but the money supply increases by $10,000. B) reserves of the banking system increase by $10,000, but the money supply will only be able to increase by something less than this amount. C) reserves of the banking system increase by $10,000, but the money supply can increase by more than $10,000. D) reserves of the banking system remain unchanged, but the money supply decreases by $10,000.
Which of the following policy measures authorized investors to bring lawsuits against credit-rating agencies for a reckless failure to get the facts when providing a credit rating?
A) the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 B) Sarbanes-Oxley Act of 2002 C) Global Legal Settlement of 2002 D) Gramm-Leach-Bliley Act of 1999 E) Riegle-Neal Act of 1994
Changes in the real interest rate affect all of the following components of aggregate expenditure except
A) consumption. B) investment. C) government purchases. D) net exports.
Refer to Figure 11.1. Assume aggregate demand is represented by AD1, full-employment output is $6.0 trillion, and the MPC is 0.75. The spending fiscal stimulus needed to reach full-employment equilibrium is
A. $0.4 trillion B. $2 trillion. C. $1 trillion. D. $0.1 trillion.