In the face of the 2007–2009 recession, the President, Congress, and the Fed

A. decided to rely on the self-correcting mechanism of the economy to eliminate inflation.
B. decided to rely on the self-correcting mechanism of the economy to reduce unemployment.
C. pursued an active policy to balance the budget and fight inflation.
D. pursued an active policy to expand aggregate demand.

Answer: D

Economics

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A) indoctrination B) backward induction C) anchoring D) sniping

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If there was no profit effect or misperception effect in the short run, then SRAS is ____ and LRAS is ____

a. upward sloping; upward sloping b. upward sloping: vertical c. vertical; upward sloping d. vertical; vertical

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