During the financial crisis of 2007–2009, the U.S. government determined that
A. AIG was too big to fail but Lehman Brothers was not.
B. Lehman Brothers was too big to fail but AIG was not.
C. both Lehman Brothers and AIG were too big to fail.
D. neither Lehman Brothers nor AIG were too big to fail.
Answer: A
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Why would economists disagree over positive analysis?
Which of the following best illustrates the concept of "derived demand"?
a. A decrease in the price of glass causes the demand for plastic to decrease. b. An increase in the demand for bread leads to an increase in the demand for flour. c. A decrease in the price of air travel leads to an increase in the quantity demanded of air travel. d. An increase in the demand for peanut butter leads to an increase in the demand for jelly.
Cindy recently graduated from law school. She is currently unemployed as she searches for work in Dallas, Texas. What type of unemployment is Cindy experiencing?
a. Frictional b. Seasonal c. Structural d. Cyclical
In a given year, U.S. nominal GDP was $2,784 billion and the GDP chain price index for that year is 60.4. Real GDP is:
A. $1,682 billion. B. $4,609 billion. C. $3,889 billion. D. $4,000 billion.