During the 2007–2008 recession the U.S. economy moved from E1 to e2 to e3. Which of the following statements is accurate?





a. The move from E1 to e2 was facilitated by a shift from SRAS2 to SRAS1.

b. While the economy was at e2 there was an inflationary gap.

c. The move from e2 to e3 was facilitated by a shift from AD2 to AD3.

d. While the economy was at e3 unemployment was unusually low.


c. The move from e2 to e3 was facilitated by a shift from AD2 to AD3.

Economics

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Indicate whether the statement is true or false

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a. open market operations b. changes in the legal reserve requirement c. changes in the discount rate d. changes in the federal funds rate e. moral suasion

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