Multiple Choice
The recession of 2007-2009 happened in part because, after the housing bubble burst in 2006, the ensuing financial crisis:
A) made it difficult for government to finance deficit spending.
B) led to widespread inflation.
C) increased the level of uncertainty about the future.
D) shifted the PAE line upward.
Correct Answer:
Verified
Correct Answer:
Verified
Q26: Planned investment may differ from actual investment
Q27: A fiscal policy action to close an
Q28: One drawback in using fiscal policy as
Q29: Data on after-tax income and consumption
Q30: Expansionary policies are government stabilization policies intended
Q32: The income-expenditure multiplier arises because one person's
Q33: In Macroland, autonomous consumption equals 100, the
Q34: The effect on short-run equilibrium output of
Q35: C + I ᵖ + G +
Q36: In Macroland, autonomous consumption equals 100, the