When the housing bubble popped, the effect of the negative demand side shock and the negative supply side shock were the same on:
A. output, causing it to definitely decrease.
B. prices, causing them to definitely rise.
C. output, causing it to definitely increase.
D. prices, causing them to definitely fall.
Answer: A
You might also like to view...
A less-developed nation will be able to benefit substantially by adopting the technologies and the business practices that have been successful in other nations, but only if
a. its wages are low enough. b. its population is large enough. c. it first educates its citizens well, so they can use the new ideas. d. it improves its institutions so that investors are willing to import the capital and any expertise needed to take advantage of the advanced production techniques that are available.
During normal times, Fed pushes the federal funds down when it wants to give the economy a boost and
A. pushes it up when it wants to restrain the economy. B. pushes it down when it wants to restrain the economy. C. does not tamper with the federal funds when it wants to restrain the economy. D. None of the above is correct.