During the Great Depression of the 1930s, the aggregate demand curve intersected the aggregate supply curve in the:
a. horizontal portion of the aggregate supply curve.
b. upward-sloping part of the aggregate supply curve.
c. vertical portion of the aggregate supply curve.
d. early years in the horizontal portion, but in the later years in the vertical portion.
e. early years in the vertical portion, but in the later years in the horizontal portion.
a
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In general, an increase in wages will lead to some reaction in line with
a. the income effect but not the substitution effect. b. the substitution effect but not the income effect. c. both the income and substitution effect. d. neither the income effect nor the substitution effect.
A diagram of an individual's utility from income will be a line with a constant slope if the individual is risk-neutral.
Answer the following statement true (T) or false (F)
Public television periodically runs pledge drives to raise money. Only a small percentage of the people who benefit from public television are willing to pay. This low percentage of people willing to contribute illustrates a difficulty with:
A. tax incentive policies. B. government regulation. C. voluntary programs. D. market incentive programs.
Since the 1930s, the Fed's most important tool for controlling the money supply has been
A. open-market operations. B. setting the discount rate. C. setting reserve requirements. D. moral suasion.