The Widespread Problems in Financial Markets During the Great Recession

question 55

Multiple Choice

The widespread problems in financial markets during the Great Recession negatively affected key institutions in the macroeconomy.In addition,the financial regulations that were put in place restricted banks' ability to lend at levels equal to those in effect prior to 2008.This resulted in a shift ________ of the ________ curve.

• A) leftward; aggregate demand
• B) leftward; long-run aggregate supply
• C) rightward; long-run aggregate supply
• D) rightward; aggregate demand
• E) rightward; short-run aggregate supply

---

Definitions:

Straight-Line Depreciation

An arrangement for apportioning the financial burden of a tangible asset equally over its viable years.

Residual Value

The projected value remaining for an asset at the conclusion of its operational lifespan.

Estimated Life

The projected period over which an asset is expected to be useful in the operations of a business for depreciation purposes.

Capital Expenditure

Long-term investment spent on acquiring or maintaining fixed assets, such as equipment, buildings, or land.