The pre-2008 boom affected the Eurozone nations, many of which engaged in:
A) fiscal restraint.
B) overconsumption, excessive and wasteful construction, and asset speculation.
C) tight monetary policies that resulted in recession.
D) wage restraint policies that angered unions.
Ans: B) overconsumption, excessive and wasteful construction, and asset speculation.
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Which of the following raises the price of a used car and increases the equilibrium quantity sold?
A) a new 8 percent federal excise tax placed on all new car purchases B) an increase in wages for used car salespeople C) a special rebate program on all new cars D) None of the above answers is correct
What impact does monetary policy have on the long-run Phillips curve?
A) Monetary policy shifts the long-run Phillips curve to the right or left, depending on whether monetary policy is expansionary or contractionary. B) Monetary policy can only shift the long-run Phillips curve to the right. C) Monetary policy can only shift the long-run Phillips curve to the left. D) Monetary policy has no impact on the long-run Phillips curve.