Use the following graph to answer the next seven questions. The graph depicts an economy where aggregate demand and long-run aggregate supply (LRAS) have decreased, with no change in short-run aggregate supply (SRAS) .
-The decline in housing prices contributed to the Great Recession,as depicted in the graph,in that:
A) it caused real gross domestic product (GDP) and the price level to increase.
B) it caused an increase in oil and gas prices, which led to inflation.
C) it caused a decrease in household wealth and created a crisis in the loanable funds market.
D) it caused an increase in household wealth and a crisis in the loanable funds market.
E) it prevented unemployment from rising above historical averages.
Correct Answer:
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Q21: During the Great Recession,the U.S.aggregate demand curve
Q32: Use the following graph to answer the
Q34: Use the following graph to answer the
Q37: The Great Recession is characterized by a
Q38: During the Great Recession,aggregate demand _ and
Q39: An institutional breakdown in U.S.financial markets would
Q40: During the Great Recession,the U.S._ curve shifted
Q41: In comparison with other recessions,the Great Depression:
A)
Q43: The back-to-back recessions that began in 1929
Q44: When U.S.housing prices declined prior to and
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