All of the Following Are Likely Reasons for the 2007-09

question 53

Multiple Choice

All of the following are likely reasons for the 2007-09 recession in the United States except

• A)a rightward shift of the AD curve.
• B)an upward shift of the IA line.
• C)an increase in potential GDP.
• D)a decrease in potential GDP.
• E)an increase in aggregate supply.

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Definitions:

Opportunity Cost

The dues for not selecting the following most suitable option when making decisions.

Point D

Another specific point on a graph or economic model, indicative of a different state or condition than Point C, useful in comparative analysis.

Point C

Typically used in economics and finance as a specific point on a graph illustrating an equilibrium, costing or other calculated value.

Production Possibilities Curve

A graphical representation that shows the maximum combination of two goods or services that can be produced with available resources and technology.