During the Great Recession, U.S. household wealth declined, leading to a decrease in aggregate demand. Which...
During the Great Recession, U.S. household wealth declined,
leading to a decrease in aggregate demand. Which pair of factors
contributed to this decline in wealth?
Choose one
:A. a financial market crisis and an increase in gas prices
B. an increase in tax rates and a decrease in stock prices
C. a decrease in stock prices and a decrease in housing prices
D. a decrease in housing prices and a decline in the level of technology
E. a decrease in housing prices and a decrease in the money
supply
Homework Answers
Ans) the correct option is C) a decrease in stock prices and a decrease in housing prices
When stock prices declined during the Great Recession, it caused demand to decrease
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During the Great Recession, U.S. household wealth declined,
leading to a decrease in aggregate demand. Which...
When the government pursued a “tight money” policy during the Great Depression, it caused aggregate demand...
When the government pursued a “tight money” policy during the Great Depression, it caused aggregate demand to decrease because it: Choose one: A. reduced consumer spending and investment spending. B. caused tax rates to decrease. C. led to very high rates of inflation, which eroded household spending. D. caused a rapid decline in exports to other countries. E. led to an increase in stock prices and household wealth.
3.18 A massive decrease in aggregate demand plunges the U.S. economy into a recession and unemployment...
3.18 A massive decrease in aggregate demand plunges the U.S. economy into a recession and unemployment rates soar to 10%. According to the classical model of macroeconomic equilibrium the economy will stagnate in a recession unless measures are taken to increase aggregate demand nominal wages will decline increasing aggregate supply until full employment is restored nominal wages will remain fixed the aggregate supply curves will shift inward making the recession worse the price level will not decline Key Concepts: Classical...
Question 51 During the Great Depression, the U.S. aggregate demand curve shifted to the left, in...
Question 51 During the Great Depression, the U.S. aggregate demand curve shifted to the left, in part, because Ise the U.S. government decreased taxes. there was a severe decline in stock prices bousing prices increased dramatically. there was an increase in the U.S. population. the U.S. government increased the supply of money Previous
Which of the following shifts aggregate demand to the left?
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During the Great Recession of 2007-08, the US economy experienced a sharp decline in aggregate demand....
During the Great Recession of 2007-08, the US economy experienced a sharp decline in aggregate demand. Study the effects of this decline on output, real interest rates and prices using both IS-LM and AS-AD models. What stabilization policies would be appropriate during a demand-driven recession?
A decline in U.S. wealth would tend to cause: a. long-run aggregate supply to increase. b....
A decline in U.S. wealth would tend to cause: a. long-run aggregate supply to increase. b. short-run aggregate supply to increase. c. aggregate demand to decrease. d. long-run aggregate supply to decrease. e. aggregate demand to increase.
Question 19 1 pts When a change in the price level leads to a change in the interest rate and thus a change in th...
Question 19 1 pts When a change in the price level leads to a change in the interest rate and thus a change in the quantity of aggregate demand, it is called theeffect. savings interest rate O price wealth o output 4 Previous Next Question 21 1 pts The Great Depression lasted longer and was deeper than the average recession, in part, because the government reduced tax rates and increased spending. the government reduced barriers to trade. there was a...
Which of the following would most likely shift aggregate demand curve from AD1 to AD2?
Which of the following would most likely shift aggregate demand curve from AD1 to AD2? An increase in stock prices that increases consumer wealth. A reduction in household borrowing because of high interest rates. An increase in personal income tax rates, b. Increased fear that a recession will cause workers to lose their jobs.
2. Which of the following statements about aggregate demand is (are) correct? (x) The wealth effect...
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A vertical AS curve means that changes in GDP will be caused by changes in potential output. changes in aggregate demand. cyclical unemployment. Jontel got a raise, which may help the economy since she will likely consume more goods and services. she will likely put more money in savings. she will likely hoard more money to prepare for fluctuations in the economy. If Keynesian economists were analyzing the oncoming recession starting in 2007 from the housing market crash, what might...
3.18 A massive decrease in aggregate demand plunges the U.S. economy into a recession and unemployment rates soar to 10%. According to the classical model of macroeconomic equilibrium the economy will stagnate in a recession unless measures are taken to increase aggregate demand nominal wages will decline increasing aggregate supply until full employment is restored nominal wages will remain fixed the aggregate supply curves will shift inward making the recession worse the price level will not decline Key Concepts: Classical...
Question 51 During the Great Depression, the U.S. aggregate demand curve shifted to the left, in part, because Ise the U.S. government decreased taxes. there was a severe decline in stock prices bousing prices increased dramatically. there was an increase in the U.S. population. the U.S. government increased the supply of money Previous
Question 19 1 pts When a change in the price level leads to a change in the interest rate and thus a change in the quantity of aggregate demand, it is called theeffect. savings interest rate O price wealth o output 4 Previous Next Question 21 1 pts The Great Depression lasted longer and was deeper than the average recession, in part, because the government reduced tax rates and increased spending. the government reduced barriers to trade. there was a...
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