The global financial panic in September 2008 that led to a sharp fall in business investment spending and consumer spending can be viewed as:
a. a sharp decrease in aggregate supply
b. a sharp decrease in aggregate demand.
c. a sharp decrease in both aggregate supply and aggregate demand.
d. a modest increase in aggregate supply.
e. a modest increase in both aggregate demand and aggregate supply.
b
Economics
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Refer to the above figure. The firm is operating using MRP0. An increase in demand for the product has occurred. The relevant curve for the firm after the increase in price
A) is MRP0. B) is MRP1. C) is MRP2. D) could be MRP1 or MRP2 depending upon whether the firm was earning a positive profit.
Economics
If inflation is higher than anticipated and benefits are not indexed, which group loses purchasing power?
a. Borrowers and lenders b. Lenders and retirees c. Borrowers and retirees d. Only borrowers e. Only lenders
Economics