Which of the Following Affected Aggregate Demand During the Recession

question 37

Multiple Choice

Which of the following affected aggregate demand during the recession of 2008-2009?

• A)a decline in residential construction and a decrease in lending
• B)a decline in residential construction but not a decrease in lending
• C)a decrease in lending but not a decline in residential construction
• D)neither a decrease in residential construction nor a decrease in lending

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Definitions:

Hawthorne Studies

A series of experiments on worker productivity conducted at the Hawthorne Works in the 1920s and 1930s, which emphasized the importance of social relations and worker satisfaction.

Productivity

The efficiency with which an individual, organization, or economy can convert inputs into useful outputs.

Henry L. Gantt

An American mechanical engineer and management consultant famed for developing the Gantt chart, a graphical scheduling tool for project management.

Differential Piece-rate Plan

A compensation system where workers are paid based on the quantity of items produced, with rates varying according to achieved efficiency thresholds.