If leakages are greater than injections, equilibrium output will be
A. Less than full-employment output, and an inflationary gap will occur.
B. More than full-employment output, and an inflationary gap will occur.
C. More than full-employment output, and a recessionary gap will occur.
D. Less than full-employment output, and a recessionary gap will occur.
Answer: D
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Government revenue from printing money is referred to as:
A) menu costs. B) seigniorage. C) shoeleather costs. D) excise tax
Which of the following occurs with both perfectly price discriminating and single-price monopolies?
A) The amount of output is inefficient. B) All consumer surplus goes to the monopoly. C) Deadweight loss is created. D) There is a redistribution of consumer surplus to the monopoly.
The required reserve ratio is required reserves stated as a percentage of checkable deposits
a. True b. False Indicate whether the statement is true or false
Steak is a normal good. If the price of steak increases,
a. the income effect on the demand for steak will reinforce the substitution effect b. the income effect on the supply of steak will, to some extent, offset the substitution effect c. the budget line will rotate outward d. consumers' purchasing power will increase e. the budget line will shift outward