Andrea Schwatz has argued that the Great Depression was caused by
a. the fall in the stock of money.
b. the fall in consumer durable spending.
c. the fall in investment spending.
d. the increase in nominal wages.
a. the fall in the stock of money.
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In the short run, a fiscal policy action that results in a reduction in the size of the budget deficit will cause
A) a reduction in real GDP with falling prices if the economy was below or at full employment. B) an inflationary gap if the economy was initially operating below full employment. C) an inflationary gap if the economy was initially operating at full employment. D) an increase in real GDP with stable prices if the economy was below full employment.
Land, labor, and money are the three categories of economic resources
a. True b. False
Refer to Scenario 9.9 below to answer the question(s) that follow. SCENARIO 9.9: Sponsors invest $250,000 in a new greeting card business on the promise that they will earn a return of 10% per year on their investment. The business sells 52,000 greeting cards per year. The fixed costs for the business include the return to investors and $79,000 in other fixed costs. Variable costs consist of wages ($1,000 per week) plus materials, electricity, etc. ($3,000 per week). The business is open 52 weeks per year.Refer to Scenario 9.9. The annual total costs for the business sum to
A. $79,000. B. $104,000. C. $208,000. D. $312,000.
Explain how the asset-price channel of monetary policy works in real estate markets.
What will be an ideal response?