A decrease in oil prices is considered a demand shock because it would lead to a shift of the aggregate demand curve
a. True
b. False
B
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Choosing from among the following, the worst recession was in
A. 1937-1938. B. 1980. C. 1990-1991. D. 2001.
What factors lead to changes in the quantity demanded of money and what factors lead to changes in the demand for money?
What will be an ideal response?
If a government chooses to finance a budget deficit by borrowing and the expected inflation rate does not change, this will cause the real interest rate to ________ and the nominal interest rate to ________
A) increase; increase B) increase; decrease C) decrease; increase D) decrease; decrease
Assume the economy is operating at a real GDP above full-employment real GDP. Classical economists would prescribe which of the following policies?
a. Nonintervention b. Active monetary policy c. Contractionary d. Expansionary