The Great Recession of 2007–2009 and the financial crisis of 2008 increased the budget deficit because of:
a. an increase in the tax rates for high-income households
b. a sudden increase in terrorist attacks and anthrax scares in the economy.
c. low interest rates that crowded out private investment.
d. discretionary tax cuts and greater outlays on unemployment benefits.
e. greater outlays on national defense spending.
d
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A new car in the dealer's showroom had a sticker price of $35,900. Sally liked the car but decided she would pay no more than $32,000 for it, otherwise she would do without it. After haggling with the dealer, she purchased the car for $31,500
Did she gain any consumers surplus? If so, how much? If not, why not?
One reason Starbucks experienced a decline in sales in the late 2000s is because
A) the product they offered was becoming less differentiated from their competitors' products. B) the coffeehouse market transitioned from being monopolistically competitive to perfectly competitive. C) barriers to entry became more restrictive in the coffeehouse market. D) the number of competitors in the market declined dramatically.
When marginal cost curve is below an average cost curve, average cost is:
A. not varying with output. B. increasing with output. C. declining with output. D. None of the statements is correct.
recessions
What will be an ideal response?