The Federal Reserve reports that it has coins valued at $10 billion, bank reserves at the Fed of $15 billion, gold valued at $10 billion, Federal Reservesnotes of $400 billion, and U.S. government securities of $300 billion
What is the size of the monetary base?
The monetary base is the sum of coins, Federal Reserve notes, and banks' reserves at the Federal Reserve. Therefore the monetary base equals $10 billion + $400 billion + $15 billion = $425 billion.
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Refer to Figure 13-15 to answer the following questions
a. What is the profit-maximizing output level? b. What is the profit-maximizing price? c. What is the average total cost at the profit-maximizing output level? d. What area represents the firm's profit? e. At which output level are economies of scale exhausted? f. Does this graph most likely represent the long run or the short run? Why?
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A) at business cycle peaks. B) at business cycle troughs. C) that causes an inflation rate of zero. D) that causes the inflation rate to remain constant. E) produced when all of our resources are being used to their maximum capacity.
Quebec is capable of producing 10 pallets of wood shingles or 8 barrels of maple syrup with a unit of labor. Vermont is capable of producing 12 pallets of wood shingles or 12 barrels of maple syrup with a unit of labor. Assume that this is typical of
the labor force as a whole. Which location has the absolute advantage and which has the comparative advantage, in the production of each good? Can these locations reap gains from trade?
Table 21-1 ? Share of Income Group National Income Lowest fifth 6 Second fifth 9 Third fifth 17 Fourth fifth 19 Highest fifth 49 ? Consider the economy described by the income distribution in Table 21-1. From this table, we can conclude that the
A. poorest quarter of the population earns 15 percent of the income. B. “middle” fifth of the population earns 32 percent of the income. C. poorest quarter of the population earns 19 percent of the income. D. richest fifth of the population earns 49 percent of the income.