The common feature of the Great Depression and the Global Economic Crisis is
A) that they were preceded by an asset price bubble.
B) the active role of the Government before the crises.
C) the active role of the FED before the crises.
D) the immediate and the aggressive response by both government and the FED.
A
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The payment received by suppliers of entrepreneurial skills is called wages
Indicate whether the statement is true or false
Which of the following does the Federal Reserve not do?
a. It controls the supply of money. b. It acts as a lender of last resort to banks. c. It makes loans to any qualified business that requests one. d. It tries to ensure the health of the banking system.
The circular flow model shows that the labor supplied by households takes place in the:
a. Money markets b. Resource markets c. Stock markets d. Product markets
Compare the features of the classical economic model to the Keynesian economic model. How do these models influence the aggregate demand curve and the aggregate supply curve? Which model, in your opinion, benefits the economy in the long run?