One factor which brought on the recession of 2007-2009 was the financial crisis in 2008.
Indicate whether the statement is true or false
Ques. 2One factor which brought on the recession of 2007-2009 was the end of the housing bubble.
Indicate whether the statement is true or false
Ques. 3Real business cycle models argue that fluctuations in real GDP are caused by unanticipated changes in the money supply.
Indicate whether the statement is true or false
Ques. 4Refer to the Article Summary. In 2015, the European Union initiated the BRRD program, where the burden of bailing out troubled banks is being placed on bank creditors, shareholders, and possibly depositors.
If this program were to confiscate funds from bank deposits to assist troubled banks, the possibility of a bank run, a situation in which ________, would likely increase.
A) a majority of the shareholders in a bank decide to sell off all their shares of stock.
B) many depositors simultaneously decide to withdraw money from a bank.
C) a bank stops paying interest on all of its interest-bearing accounts.
D) a majority of the bank's loans go into default all at once.
Ques. 5A decrease in the price level in the United States will have what effect on the aggregate expenditure line?
A) Aggregate expenditure will shift downward.
B) Aggregate expenditure will shift upward.
C) Aggregate expenditure will become steeper.
D) Aggregate expenditure will not be affected by a decrease in the price level in the United States.
Ques. 6From an initial long-run equilibrium, if aggregate demand grows faster than long-run and short-run aggregate supply, then Congress and the president would most likely
A) decrease tax rates. B) decrease government spending.
C) decrease the required reserve ratio. D) decrease oil prices.