An increase in aggregate demand will tend to cause which of the following?
A) a deflationary gap
B) a recessionary gap
C) cost-push inflation
D) none of the above
D
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Microeconomics
a. addresses scarcity from a global perspective b. examines how individuals, households, and firms make economic decisions c. is purely theoretical and has little value in explaining real-world phenomena d. focuses on what is happening in the economy as a whole e. answers the fundamental economic questions of how, when, where, and why
By lowering the legal reserve requirement, the Federal Reserve System forces banks to hold repaid loans as required reserves instead of lending the funds again
Indicate whether the statement is true or false
All of the following are generally true about trade-displaced workers EXCEPT that they ________.
A) move abroad to take new jobs B) earn less in their new jobs than they earned in their old ones C) spend their unemployment benefits on living rather than retraining D) have difficulty finding new work because of educational deficiencies
An increase in the domestic price level will
A. shift the IS curve to the right. B. shift the FE curve to the left. C. lead to a surplus in the balance of payments. D. shift the LM curve to the right.