FIRREA increased the core-capital leverage requirement for thrift institutions from 3% to
A) 8%.
B) 5%.
C) 10%.
D) 25%
A
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A long-run aggregate supply curve may graphically be represented as a
A) vertical line. B) a downward sloping line. C) an upward sloping line. D) horizontal line.
If the AD curve shifts rightward, then
A) both the price level and real GDP will decrease. B) both the price level and real GDP will increase. C) the price level will increase, but no change will occur in real GDP. D) the price level will not change, but real GDP will increase. E) potential GDP increases.
In the Keynesian framework, as long as output is above the equilibrium level, unplanned inventory investment will remain ________ and firms will continue to ________ production
A) negative; lower B) negative; raise C) positive; lower D) positive; raise
Explain the following statement by Arthur Okun: "Insistence on carving the pie into equal slices would shrink the size of the pie. This fact poses the trade-off between economic equality and economic efficiency."
What will be an ideal response?