The financial crisis that began in 2007:
a. was predicted in detail by Alan Greenspan and Ben Bernanke.
b. was centered on subprime lending and the complex financial instruments based on subprime loans.
c. was caused by a downturn in the stock market.
d. None of the above are correct.
b. was centered on subprime lending and the complex financial instruments based on subprime loans.
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A duopoly is a market structure with: a. one buyer and one seller
b. two firms providing all the output. c. only two differentiated products. d. only a few dominant sellers and a limited number of buyers.
When the economy is operating at an output beyond its full-employment potential, the
a. actual level of unemployment will exceed the natural rate of unemployment. b. actual level of unemployment will equal the natural rate of unemployment. c. strong demand for resources will place upward pressure on resource prices. d. aggregate demand will increase until full employment is restored.