(Consider This) the 2007-2009 Recession Began with Reductions in Investment

question 126

Multiple Choice

(Consider This) The 2007-2009 recession began with reductions in investment and consumption spending, precipitated by a financial crisis.This explanation for the recession is consistent with

• A)the monetarist view of macroeconomic instability.
• B)the rational expectations view of macroeconomic instability.
• C)the mainstream view of macroeconomic instability.
• D)none of these views of macroeconomic instability.

Understand the mechanisms and effects of the implicit association test in uncovering covert prejudices.

Comprehend how social theories explain the maintenance or escalation of prejudices and discrimination.

Learn the significance of the social exchange theory in the dynamics of close relationships.

Understand the role of attribution and behavior confirmation in perpetuating stereotypes and prejudices.

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Definitions:

Price Floor

A government-imposed limit on how low a price can be charged, usually above the equilibrium price, which can prevent the market from clearing.

Price Ceiling

A government-imposed limit on how high a price can be charged for a product, service, or resource, usually intended to protect consumers from prices deemed excessively high.

External Benefits

Benefits derived from a product or service that affect parties who did not choose to incur that benefit.

Efficient Level

The optimal point of operation where resources are used in such a way that maximizes productivity and minimizes waste.