In the above figure, if the relevant aggregate demand curve is AD2, what are the short-run equilibrium price level and real GDP?
A) 120 and $11.5 trillion B) 120 and $12 trillion
C) 130 and $11.5 trillion D) 130 and $12 trillion
A
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Refer to the scenario above. What is the present value of Option A?
A) $2,464.11 B) $2,385.07 C) $2,463.66 D) $4,898.46
Refer to Figure 3-5. At a price of $20, the quantity sold
A) is 0 units. B) is 4 units. C) is 8 units. D) cannot be determined.
Which of the following will increase the total amount of reserves banks are holding?
A. A bank increases the number of loans to firms and households. B. A bank borrows reserves from the Federal Reserve. C. A bank attracts new customers depositing funds into their checkable deposits. D. The Federal Reserve reduces the reserve requirement.
The real exchange rate is defined to be the:
A. value of goods in one nation relative to the value the same set of goods in another country. B. rate at which firms in different nations would be willing to exchange goods. C. rate people exchange goods and services in a domestic market. D. value of goods in one nation relative to the value a similar set of goods in another country.