An adverse supply shock generally decreases the price level and ...

[D2AR0N]

An adverse supply shock generally decreases the price level and the real GDP.
 a. True
  b. False
  Indicate whether the statement is true or false

Question 2

During the 2007-2009 financial crisis, the Federal Reserve took some unusual steps in its conduct of monetary policy. Which of the following was not one of them?
 a. It invested in AIG.
 b. It invested more than 1 trillion in mortgage-backed securities.
 c. It worked with the U.S. Treasury and with other regulators to stabilize banks and thaw frozen credit lines.
  d. It worked with the U.S. Treasury and other regulators to help conduct a stress test of the 19 largest banks.
  e. It bailed out General Motors.

[Viet Thy]

Answer to Question 1

False

Answer to Question 2

e