During the recession of 2008, the U.S.experienced lower real interest rates at the same time investment and GDP were falling
How would a Classical economist explain this recession? Provide a graph of the Classical capital market to illustrate your arguments.
This must have been caused by a fall in investment which reduced the capital stock and aggregate supply.
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If you overheard a farmer discussing his planting plans for the upcoming season, and he said "The price of corn has gone way up. I know I'll have to put some money into fertilizer on that field on the hill that's been idle all these years, but it will be worth it this year." This would be consistent with which justification for an upward sloping supply curve
A. the real-balance effect? B. increasing marginal cost? C. diminishing marginal utility? D. the need for higher prices in one good to motivate a shift in production from another?
Table 15.1Table 15.1 shows the preferred budget in millions for a new sports facility and the number of thousands of voters in a community who prefer that budget. Tom proposed a budget of $5 million while Mary proposed a budget of $4 million. Which of the two candidates will be elected if everyone votes?
A. Tom B. Mary C. It will be a tie. D. The outcome of the election cannot be predicted.