Currency and checkable deposits are:
A. Assets of the Federal Reserve Banks or of financial institutions
B. Redeemable for gold and silver from the Federal Reserve System
C. Of intrinsic value which determines the relative worth of money
D. The major components of money supply M1
D. The major components of money supply M1
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When discussing the CPI, the term "commodity substitution bias" refers to changes in
A) prices that lead business to change the items they buy. B) quantities that lead households to change the items they buy. C) prices that lead households to change the items they buy. D) income that lead households to change the items they buy. E) stores so that consumers switch from one store to another.
If the economy is in equilibrium with real GDP less than potential GDP, there is ________ gap and a fiscal policy that ________ is appropriate
A) an inflationary; increases aggregate demand B) an inflationary; decreases aggregate demand C) a recessionary; increases aggregate demand D) a recessionary; decreases aggregate demand E) a recessionary; increases potential GDP
By definition, a government-sponsored good
A) is a good that is deemed socially desirable. B) is a good that should be available only to upper-income groups. C) is always provided at a zero price. D) does not affect society's general welfare.
Firemen generally are paid higher wages because
a. they are usually highly educated b. they are usually working under riskier conditions c. they are working long and uncertain hours d. both B&C