Question 5 According to real business cycle theory, why did the U.S. Economy exp

Question

Question 5

According to real business cycle theory, why did the U.S. Economy experience the most recent recession?

The money supply declined.

The financial crisis lead to a "shock" to aggregate supply.

Consumers and managers of firms were pessimistic about the future.

Politicians did not implement expansionary policies

All answers are correct.

Question 6

An economist from which perspective would support the quantitative easing policies of the Federal Reserve?

Monetarist

New Classical

New Keynesian

Real Business Cycle

Question 7

As workers change their expectations to expect higher inflation (or a higher price level),

there is a decrease in long-run aggregate supply.

there is an increase in aggregate demand.

there is a decrease in aggregate demand.

there is a decrease in short-run aggregate supply.

there is an increase in short-run aggregate supply.

Question 8

Which of the following are real "shocks" to aggregate supply? SELECT ALL THAT APPLY

Bad weather or drought

Decline in the money supply

Decline in consumer confidence

Financial market collapse

The money supply declined.

The financial crisis lead to a "shock" to aggregate supply.

Consumers and managers of firms were pessimistic about the future.

Politicians did not implement expansionary policies

All answers are correct.

Explanation / Answer

According to real business cycle theory, why did the U.S. Economy experience the most recent recession?

The money supply declined.

The financial crisis lead to a "shock" to aggregate supply.

Consumers and managers of firms were pessimistic about the future.

Politicians did not implement expansionary policies

All answers are correct.

Question 6

An economist from which perspective would support the quantitative easing policies of the Federal Reserve?

Monetarist

New Classical

New Keynesian

Real Business Cycle

Question 7

As workers change their expectations to expect higher inflation (or a higher price level),

there is a decrease in long-run aggregate supply.

there is an increase in aggregate demand.

there is a decrease in aggregate demand.

there is a decrease in short-run aggregate supply.

there is an increase in short-run aggregate supply.

Question 8

Which of the following are real "shocks" to aggregate supply? SELECT ALL THAT APPLY

Bad weather or drought

Decline in the money supply

Decline in consumer confidence

Financial market collapse

The money supply declined.

The financial crisis lead to a "shock" to aggregate supply.

Consumers and managers of firms were pessimistic about the future.

Politicians did not implement expansionary policies

All answers are correct.

Related Questions

Navigate

• Browse (All)
• Browse Q
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.