Why were banking panics and failures largely eliminated after 1933?
a. There were fewer recessions.
b. There was more government spending.
c. All U.S. currency began to be backed by gold.
d. Congress created deposit insurance.
e. The banking sector became less important as the US became a more trade-oriented economy.
D
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The full-employment and full-adjustment level of real Gross Domestic Product (GDP) in the economy is represented by
A) the horizontal line at the price level. B) the LRAS curve. C) the distance between the LRAS curve and the AD curve. D) the AD curve.
In a kinked demand market, whenever one firm decides to lower its price,
a. other firms will automatically follow. b. none of the other firms will follow. c. one half of the firms follow and one half of the firms don't follow the price cut. d. other firms all decide to exit the industry e. all of the other firms raise their prices.