The Recession in Real GDP in 1970 During the Nixon

question 23

Multiple Choice

The recession in real GDP in 1970 during the Nixon administration

• A) did not accord with the Keynesian theory because the price level had risen sharply; in the Keynesian model, prices fell when real GDP and employment were falling.
• B) reinforced the Keynesian theory that prices fell when real GDP and employment were falling.
• C) did not accord with the Keynesian theory because expansionary fiscal policies resulted in deflation; in the Keynesian model, prices rose when expansionary fiscal policies were administered to eliminate a recessionary gap.
• D) reinforced the Keynesian theory that fiscal policies were more effective than monetary policies in reducing output gaps.

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Definitions:

Attachment

A legal procedure by which a court of law, at the request of a creditor, designates specific property owned by the debtor to be transferred to the creditor or sold for benefit of the creditor.

Filing

The process of submitting documents to a designated body or authority (such as a court or public office) for official recording and recognition.

Continuation Statements

Documents filed to continue the effectiveness of a UCC financing statement beyond its original expiration date.

Financing Statement

A document filed to give public notice of a secured party's interest in the debtor's personal property, usually in connection with securing a loan.