A major cause of the Great Recession was:
a. The liberalization of U.S. banking regulations that led to excessive risk taking.
b.Excessive foreign exchange speculation.
c. Contractionary fiscal policies.
d. Excessive money creation by the Federal Reserve immediately before and during the downturn.
e. None of the above.
.A
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If retail managers are ordering extra merchandise from their wholesale distributors, then it is probably true that
A. total output is greater than total spending. B. price levels are decreasing. C. inventory levels are increasing. D. inventory levels are decreasing.
Conditional input demands are homogeneous of degree zero in input prices.
Answer the following statement true (T) or false (F)
One way that continual inflationary price increases can occur is if the government continually attempts to stimulate aggregate demand in a way that keeps pushing the AD curve when it is already in the which portion of the SRAS curve?
a. Flat b. Steep c. Intermediate d. Keynesian
A pizza shop owner who needs to buy a new pizza oven is trying to decide between two different used ones. Whichever oven he buys, it will generate $6,000 net revenue per year. But the older pizza oven has a useful life of only 3 years and the newer oven has a useful life of 5 years. If the interest rate is 7% per year, what is the difference in value between the two ovens? (Assume that each
year's revenue is received at the end of the year.) a. 413.25 b. $10,892.99 c. $15,745.90 d. $24,601.18 e. $8,855.29