The March 2000 "Tech Bubble" Burst Caused the Aggregate Demand

question 86

Multiple Choice

The March 2000 "tech bubble" burst caused the aggregate demand curve to shift to the left by ________.

• A)causing an upward spike in the real interest rate
• B)reducing autonomous spending by households and businesses
• C)reducing government spending on high-tech equipment
• D)all of the above
• E)none of the above

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Definitions:

Unsystematic Risk

The risk associated with a specific issuer of a security, such as a company's financial condition or management decisions, distinct from market risk.

Unemployment Figures

Unemployment figures represent the statistic that measures the number of people who are actively looking for employment but unable to find work, often expressed as a percentage of the labor force.

Unsystematic Risk

The risk associated with a specific company or industry, also known as non-systematic risk or diversifiable risk.

Quarterly Loss

A financial situation where a company spends more than it earns during a three-month period, leading to a negative net income.