Which of the following is incorrect? The ill effects of the Great Recession were:
a. Mainly restricted to large financial institutions.
b. Mainly restricted to credit markets and had little effect on the real goods market.
c. Mainly restricted to the U.S. stock market.
d. Felt nationwide and had strong effects internationally.
e. All of the above are incorrect.
Question 2 - If the price of inputs falls and the budget deficit rises due to an increase in government spending, then the:
a. Price index rises, and real GDP falls.
b. Price index is uncertain, and real GDP rises.
c. Price index rises, and the change in real GDP is uncertain.
d. Price index falls, and real GDP rises.
e. Price index falls, and real GDP falls.
Question 3 - Which of the following is incorrect? During the Great Recession U.S:
a. Wealth fell.
b. Unemployment duration rose.
c. Stock market rose.
d. Inflation fell.
e. All of the above are correct.
Question 4 - If the price of inputs falls and the budget deficit rises due to an increase in government spending, then the:
a. Price index rises, and real GDP rises.
b. Price index rises, and real GDP falls.
c. Price index rises, and the change in real GDP is uncertain.
d. Price index falls, and real GDP rises.
e. Price index is uncertain, and real GDP rises.
Question 5 - Which of the following is incorrect? During the Great Recession U.S:
a. Wealth fell.
b. Unemployment duration rose.
c. Monetary base fell.
d. Inflation fell.
e. All of the above are correct.
Question 6 - If the price of inputs rises and consumer expectations about future economic activity worsens:
a. Price index falls, and real GDP rises.
b. Price index falls, and real GDP falls.
c. Price index falls, and the change in real GDP is uncertain.
d. The change in price index is uncertain, and real GDP rises.
e. The change in price index is uncertain, and real GDP falls.
Question 7 - Which of the following is incorrect? During the Great Recession U.S:
a. Real GDP fell.
b. Unemployment rose.
c. Monetary base fell.
d. Inflation fell.
e. All of the above are correct.
Question 8 - If the price of inputs rises and consumer expectations about future economic activity worsens:
a. Price index rises, and the change in real GDP is uncertain.
b. Price index falls, and real GDP rises.
c. The change in price index is uncertain, and real GDP rises.
d. The change in price index is uncertain, and real GDP falls.
e. Price index falls, and the change in real GDP is uncertain.
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