Which of the Following Is a Possible Reason for the Improved

question 118

Multiple Choice

Which of the following is a possible reason for the improved economic performance between 1985 and 2007?

• A)Demand Shocks have become smaller and less important.
• B)Monetary and fiscal policy have become more effective.
• C)Change in conditions that make monetary and/or fiscal policy more powerful.
• D)All of the above

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Definitions:

Resource Availability

This refers to the accessibility and abundance of natural, human, and capital resources which can be used for production.

Pioneering Spirit

The attitude or approach characterized by innovation, taking risks, and trying new things, often in exploration or business.

Recessions

Periods of temporary economic decline during which trade and industrial activity are reduced, generally identified by a fall in GDP in two successive quarters.

Depressions

Extended periods of significant decline in economic activity across an economy, characterized by high unemployment, falling prices, and reduced levels of trade and investment.