According to the new classical model,
a. anticipated declines in aggregate demand would move output and employment below the full-employment levels.
b. announced declines in aggregate demand do not change output and employment above the full-employment levels.
c. anticipated declines in aggregate supply would only put employment below the full-employment level.
d. unanticipated declines in aggregate demand would cause output and employment to fall below the full-employment levels.
e. both c and d.
E
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Which of the following decrease the deadweight loss from a rent ceiling set below the equilibrium rent? i. lowering the ceiling ii. dedicating more resources to enforcement of the ceiling iii. raising the ceiling
A) i only B) ii only C) iii only D) i and ii E) ii and iii
From the mid 1980s to the present, the United States
a. had only a small current account deficit. b. had a large capital account deficit, which in the balance of payments accounts was financed with a surplus in the current account, which in turn financed investment in excess of domestic saving. c. has had a large current account deficit, which in the balance of payments accounts was financed with a surplus in the capital account, that in turn financed investment in excess of domestic saving. d. None of the above
Entry barriers are most significant in
A) pure competition. B) monopolistic competition. C) oligopoly. D) pure monopoly.
Assume we have a simplified banking system in balance-sheet equilibrium. Also assume that all banks are subject to a uniform 10 percent reserve requirement and checkable deposits are the only form of money. A commercial bank receiving a new checkable deposit of $100 would be able to extend new loans in the amount of:
a. $10. b. $90. c. $100. d. $1,000.