After the subprime crisis-lenders were less willing to lend

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Reference no: EM131389254

1. After the subprime crisis, lenders were less willing to lend. Therefore, it became harder for businesses to borrow to buy new factories and equipment and for families and individuals to borrow to buy cars, furniture, etc. In the short run, this would cause _____________ in the price level and ____________ in real output.

an increase; a decrease

a decrease; an increase

none of the listed options

a decrease; a decrease

no change; a decrease

2. Consider again the Great Depression. The long run effect of the forces cited above would be _________ in the price level and _________ in real output.

a decrease; a decrease

none of the listed options

an increase; a decrease

no change; a decrease

a decrease; no change

Reference no: EM131389254

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