24) Great Recession and Great Depression were similar except Stock Market crash High U...

Question

Question

24) Great Recession and Great Depression were similar except Stock Market crash High U...

24) Great Recession and Great Depression were similar except

Stock Market crash

High Unemployment

Bad loans by banks

Role of the Fed

25) The various kinds of automatic stabilizers are:

Increased Defense spending

All of them

Expansionary Monetary Policy

Taxes and Transfer payments

29) Internet Revolution in the 1990’s was an example of

Negative Supply shock

Positive demand shock

Negative Demand shock

Positive Supply shock

33) To close a recessionary gap, the Fed would

increase the money supply

increase interest rates.

decrease the money supply.

sell bonds.

business economics

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Answer 1

Answer #1

a) "D"

role of the Fed, in the later recession the Fed played very active role, in the first it was dormant.

b) "D"

Tax and transfer payments are example of various stabilizer.

c) "D"

internet revolution is an example of positive supply shock.

d) "A"

The Fed would decrease the money supply and reduce the interest rate.

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Answer 2

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