Recovery in the United States after the Great Recession can be characterized as:
a. Rapid, as U.S. unemployment fell and employment rose.
b. Slow to develop, as unemployment fell and employment rose at very sluggish paces.
c. Non-existent. After three years, the U.S. economy was in the same position as 2008.
d. Mixed, as real GDP grew rapidly, but the unemployment rate and employment rate lagged behind.
Question 2
In explaining the downward-sloping aggregate demand curve, the net export effect is:
a. When a nation's price index falls, international capital flows are attracted to it, which causes the net exports to rise.
b. When the price index falls, net exports fall because a nation's exports become relatively cheaper and its imports become relatively more expensive.
c. When the price index falls, the real money supply rises, causing the real risk-free interest rate to fall, and consumption and real investment to rise.
d. When the price index falls, net exports rise because a nation's exports become relatively cheaper and its imports become relatively more expensive.
e. When the price index falls, central banks intervene to bring prices back to where they were, causing net exports to rise.
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