Which of the following contributed to the weak recovery from the 2008-2009 recession?
a. Government stimulus spending that was largely temporary and often directed toward unproductive activities.
b. The restrictive monetary policy followed by the Fed.
c. The tax increases instituted by a Congress intent on balancing the budget.
d. The failure of the Fed to provide the banking system with sufficient reserves for the extension of new loans.
A
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If for a given year nominal GDP is $2000 billion and real GDP is $1500 billion, then the GDP price index is
A) 100. B) 1.33. C) 750. D) 0.75. E) 133.
Suppose a country repealed its investment tax credit. The effects of this are represented by shifting the
a. demand for and the supply of loanable funds to the right. b. demand for and the supply of loanable funds to the left. c. supply of loanable funds to the right and the demand for loanable funds to the left. d. None of the above is correct.