Viewed through the aggregate expenditures model, the U.S. recession of 2007-2009 resulted mainly from:
A. a fall in the average propensity to save.
B. insufficient aggregate expenditures.
C. reduced government spending.
D. increased taxes.
B. insufficient aggregate expenditures.
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In 2014, the price of peanuts increased. In the market for peanut butter, this change lead to ________ and which therefore ________ the price of peanut butter and ________ the quantity of peanut butter
A) a decrease in the supply; increased; decreased B) an increase in supply; decreased; increased C) a decrease in demand; decreased; decreased D) an increase in demand; increased; increased
If rapid increases in oil prices caused price levels to increase and real GDP to decrease in the short run, the economy would experience
A) an increase in the natural rate of unemployment. B) stagflation. C) long-run economic decline. D) hyperinflation.
If Donald receives a pay raise and the income effect outweighs the price effect on his labor supply decisions, he will work:
A. more hours. B. less hours. C. the same amount. D. less hours initially but eventually work more.
What country has the greatest degree of globalization?
a. United States b. Germany c. South Korea d. China