When the housing bubble popped, the effect of the negative demand side shock and the negative supply side shock were the same on:
A. output, causing it to definitely decrease.
B. prices, causing them to definitely rise.
C. output, causing it to definitely increase.
D. prices, causing them to definitely fall.
Answer: A
You might also like to view...
Absentee landowners characterize the agrarian system of
(a) Asia. (b) Latin America. (c) Sub-Saharan Africa. (d) all of the above.
The U.S. non institutional population excludes
a. members of the resident armed forces. b. all students under the age of 18. c. persons in prisons and medical institutions. d. All of these.
What is being depicted in this graph showing the nonunion sector?
a. When the number of workers decreases from W 1 to W 3 , the salaries and quantity of
labor increase in an inverse relationship.
b. By increasing supply from S 1 to S 2 , workers unable to get jobs in the union sector
increase the wages in the nonunion sector.
c. In the nonunion sector, wage rates, labor supply, and quantity of labor are all less
than they are in the union sector.
d. Workers unable to get union jobs are forced into the nonunion sector, where the
increased supply of labor drives down wages.
An increase in interest rate will ______ the quantity of money demanded for transactions and ______ the quantity of money demanded for speculation.
a) increase; increase b) increase; decrease c) decrease; increase d) decrease; decrease