Which of the following is incorrect? The ill effects of the Great Recession were:
a. Mainly restricted to large financial institutions.
b. Mainly restricted to credit markets and had little effect on the real goods market.
c. Mainly restricted to the U.S. stock market.
d. Felt nationwide and had strong effects internationally.
e. All of the above are incorrect.
Question 2
If the price of inputs falls and the budget deficit rises due to an increase in government spending, then the:
a. Price index rises, and real GDP falls.
b. Price index is uncertain, and real GDP rises.
c. Price index rises, and the change in real GDP is uncertain.
d. Price index falls, and real GDP rises.
e. Price index falls, and real GDP falls.
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