Which of the following affected aggregate demand during the recession of 2008-2009?
a. a decline in residential construction and a decrease in lending
b. a decline in residential construction but not a decrease in lending
c. a decrease in lending but not a decline in residential construction
d. neither a decrease in residential construction nor a decrease in lending
a
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When we say the U.S. economy has grown on average at 2.1%, we mean
A) the inflation rate. B) the growth rate of nominal GDP. C) the growth rate of per-capita nominal GDP. D) the growth rate of per-capita real GDP.
Diminishing returns to labor occur for two primary reasons: 1) as we keep adding new workers, it becomes increasingly difficult to obtain productivity gains through additional specialization; and 2) each additional worker we add has less land and capital to work with
a. True b. False