If two variables are completely unrelated to each other, then graphing these two variables will yield a line that is:
A. Always vertical
B. Always horizontal
C. Not a line, but only a single point
D. Either vertical or horizontal
Answer: D
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According to the infant industry argument for import protection, such protection is needed because:
A) foreign workers are often paid less than American workers. B) it enables our protected industries to achieve technological efficiency and thus become competitive with mature foreign industries. C) the nation's national security depends on a strong industrial base. D) it provides consumers with more and better goods in the long run.
During the recession of 2007-2009, the U.S. economy was experiencing a decrease in home prices and consumer wealth, a credit crisis in the financial markets, and declining consumer and business confidence
What components of aggregate demand were affected and what was the impact on real output? What were the policy options?