In the above figure, the economy would most likely move from AD1 to AD2 because of
A) an aggregate supply shock.
B) an aggregate demand shock.
C) a recession.
D) a depression.
B
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An effective Federal Reserve operating target is a target that is reliably linked to
A) inflation and unemployment rates. B) other operating targets. C) fiscal policy. D) open market operations.
The quantity of money demanded is the
A) average daily volume of bank account withdrawals. B) amount that people and businesses choose to hold. C) fraction of cash holdings in an average investment portfolio. D) income and volume of profits that people and businesses would like to receive. E) sum of checkable and savings deposits at banks.
Which of the following is the best example of an intermediate good?
A. A new highway B. The commission that goes to a real estate agent C. Wax purchased by a candle company D. Wheat sold to a foreign country
Taxes:
A. cause the price consumers pay to equal the price suppliers receive. B. create a wedge between the price consumers pay and the price suppliers receive. C. cause the equilibrium quantity to increase. D. cause market shortages.