Principles of Economics (12th Edition)
12th Edition
ISBN: 9780134078779
Author: Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher: PEARSON
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Chapter 20, Problem 1.3P
To determine
Changes in output and
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Real GDP in Japan decreased 7.3% in the second quarter of 2014 and decreased 1.6% in the third quarter. Which of these statements is true?
The GDP decrease could be explained by a fall in savings
According to the popular definition, Japan is in a recession.
According to the official definition of recession, Japan’s economy reached a peak in the second quarter.
When a recession begins and ends is determined by the Business Cycle Dating Committee (chaired by our textbook author Robert Hall) within the National Bureau of Economic Research (NBER). The NBER concluded that the unprecedented magnitude of the decline in employment and production, and its broad reach across the entire economy, warrants the designation of this current pandemic-driven episode in the nation as a recession.
True
False
Which of the below did NOT happen during the Great Recession of Dec. 2007 - June 2009?
Group of answer choices
Christina Romer, the then chair of President Obama's Council of Economic Advisers estimated that household wealth increased by 5% between December 2007 and December 2008.
Banks had made subprime mortgage loans to overly leaveraged American families who could not make their mortgage payments.
The American Recovery and Reinvestment Act (ARRA), or President Obama's Stimulus Bill was enacted in 2009.
The investment bank, Lehman Brothers, declared bankruptcy leaving all of its creditors high and dry.
Chapter 20 Solutions
Principles of Economics (12th Edition)
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