In Most of the Macroeconomic Models Built Before the Crisis

question 26

Multiple Choice

In most of the macroeconomic models built before the crisis, what role did the financial system and intermediation play?

• A) The role of banks and other financial institutions in the economy was largely ignored.
• B) Banks and other financial institutions were a regular feature of macroeconomic models but played a minor role.
• C) Most of the work on the elements needed to understand the crisis was carried out in the fields of finance or corporate finance so that these elements were not fully incorporated.
• D) Both A and B.
• E) Both A and C.

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Definitions:

Labour Standards

Established benchmarks or criteria for measuring the productivity, efficiency, and performance of labor within an organization or industry.

Assembly Lines

A manufacturing process in which parts are added to a product in a sequential manner to create a finished product in the most efficient way.

Expected Production

The anticipated quantity of products or services to be produced in a specific period.

Labour Standards

The criteria or guidelines that define acceptable working conditions, including hours of work, safety, wages, and benefits.