Question 22(1 point)

Which of the following statements is true about the Great Recession (December 2007-June 2009)?

a

The Federal Reserve lowered short-term interest rates to almost zero in order to stimulate investment and consumption during the recession.

b

The Federal government undertook a massive public spending program and cut taxes in order to increase demand.

c

The Federal government pursued the smallest peacetime spending program.

d

All of the above.

e

Only a) and b)

Question 23(1 point)

Which of the following statements is true?

a

The number ofdiscouraged workersand part-time workers for economic reasons decreased significantly during the Great Recession.

b

A large proportion of jobs created after the Great Recession arelow-paying jobs, which affect the ability of families to buy what they need.

c

In the mid- and late 1970s, oil price shocks causedcost-push inflation, rising unemployment, and anegative GDP gap.

d

All of the above.

e

Only b) and c)

Question 24(1 point)

Which of the following statements is true?

a

The world experienced the 1973 oil crisis and the 1979 energy crisis. And as a result of these two crises, the US experienced the severe recession of 1973-1975, and the 1980 recession.

b

In 2005, a conflict in the Middle East, combined with rapidly rising demand for oil in India and China, pushed oil prices above $60 per barrel.

c

In 2007 oil prices increased again to $50 per barrel, and in July of 2008 oil prices increased to $140 per barrel, but inflation didn't occur.

d

All of the above.

e

Only a) and b)