Exam 12: Short-Run Fluctuations

Which of the following rises during a recession?

Mortgage defaults are likely to rise when ________.

Multipliers amplify an initial shock.When do multiplier effects take place?

Which of the following terms refers to an unusually severe,prolonged recession,typically with an unemployment rate that exceeds 20 percent?

Jane decided to stop making payments on her mortgage.This is known as ________.

What are "cash-out refinancings"?

Which of the following is true?

The government of Inventia has increased its expenditure following a recession.This is likely to lead to ________.

The unemployment rate in Utopia rose to 12 percent when the country was in a recession.How will the labor market in Utopia be affected if an expansionary monetary policy triggers inflation in the economy?

Of approximately 5,000 banks regulated by the FDIC,how many failed as a result of the financial crisis?

One result of the financial crisis was the failure of Lehman Brothers.What sort of business was Lehman Brothers?

The length of expansions is ________ the length of recessions is ________.

Economic growth is said to be persistent,meaning that if the economy is in a recession this quarter,it will probably ________.

On a graph with real consumption growth on the x-axis and real investment growth on the y-axis,you plot each year's values for the United States as a separate point.What does the overall trend in this graph look like?

Why are firms usually unwilling to lower nominal wages?

How is a firm's labor demand affected during a recession if wages are downwardly rigid?

Which of the following is most likely to happen if aggregate consumption in an economy falls steeply?

Assuming all else equal,if the labor demand curve shifts to the left and the labor supply curve remains unchanged,________.

What happened to stock prices during the Great Depression?

Which of the following is likely to happen when the banking system of a country recuperates after a recession?