In the 1970s, one of the causes of stagflation was _____
Fill in the blank(s) with the appropriate word(s).
adverse supply shocks that shifted the aggregate supply curve left
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When there is an expansionary gap, inflation will ________, in response to which the Federal Reserve will ________ real interest rates, and output will ________.
A. decline; lower; expand B. increase; raise; decline C. decline; lower; decline D. decline; raise; decline
Which of the following people would be considered unemployed by the Bureau of Labor Statistics?
I. Mrs. X retires from her job and does not look for another job. II. Mr. Y was laid off from his job as a welder, but expects to be rehired in 8 months. A) I only B) II only C) Both I and II D) Neither I nor II
Suppose you found $2,000 hidden in your mattress and deposited it in a demand deposit account at your bank. If the reserve requirement was 25 percent, the deposit would directly create ____ in excess reserves and ultimately lead to a ____ total increase in the money supply, if all banks in the system lend out 100 percent of their excess reserves
a. $2,000; $8,000 b. $2,000; $6,000 c. $1,500; $8,000 d. $1,500; $6,000
A general and ongoing rise in the prices of goods and services in an economy is called inflation
a. True b. False Indicate whether the statement is true or false