Exam 12: Short-Run Fluctuations

Which of the following happens during a recession?

Which of the following outcomes is likely if a contractionary monetary policy is adopted?

In an upward-sloping section of a labor supply curve,________.

Country A specializes in the production of automobiles,and 45 percent of its population works in the automobile manufacturing industry.A sharp increase in the world prices of automobiles led to a boom in the automobile manufacturing industry in Country A.However,the automobile manufacturers overestimated the demand for automobiles.This led to overproduction,which resulted in a large stock of unsold cars.Which of the following is likely to happen in the near future?

Assuming all else equal,if the price of fuel and energy increases,________.

Declines in the housing market in the late 2000s and the stock market crash caused total U.S.household wealth to decrease.How did this affect consumption spending?

Assuming all else equal,if firms expect the demand for their products to increase in the near future,________.

The "residential construction industry" refers to the building of things like ________.

Employers often end up laying off more workers during a recession because of ________.

Which of the following happens if the real interest rate in an economy rises?

A sudden fall in housing prices in Potentia has lowered the confidence of households.Assuming all else equal,this is likely to lead to a(n)________.

Assuming all else equal,when the labor demand curve shifts to the left,________.

The figure below shows the relationship between an economy's output and employment. -Refer to the figure above.Suppose the economy is currently operating on the production function F₂ and E₂ is the level of employment in the country.If the demand curve for labor shifts to the left,________.

The Bank of Techland is the largest bank in Techland.Which of the following is likely to be true if this bank fails?

Which of the following happened during the recession of 2007-2009?

If a contractionary monetary policy is adopted,________.

Country X is the largest producer and exporter of oil in the world.Which of the following is likely to happen if the world demand for oil increases?

Agraria is experiencing a recession.How can the government of Agraria use fiscal policy to improve the economic condition of the country?

Which of the following is likely to happen if the level of technology used in an economy improves,assuming all else equal?

________ was the main proponent of the view that changes in money supply in an economy can drive business cycles.