The relationship between the AS-AD model and the Phillips curve points out that as aggregate demand increases, the unemployment rate
A) decreases and the price level falls.
B) increases and the inflation rate rises.
C) increases and the inflation rate falls.
D) decreases and the inflation rate does not change, only the price level rises.
E) decreases and the inflation rate rises.
E
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Did you ever hear of a util before studying economics? Probably not. Utils
a. are the same as income b. are used to measure the amount of satisfaction a person obtains from consuming a good c. are not valid measures in economics d. are hypothetical indicators of the effectiveness of public utilities e. measure price increases of a good relative to those of other goods
Table 13.1XYZ Bank Balance SheetAssetsLiabilitiesTotal reserves$100,000Transactions accounts$400,000Loans300,000??Refer to Table 13.1. With a required reserve ratio of 12 percent, XYZ Bank would have excess reserves of
A. $100,000. B. $48,000. C. $12,000. D. $52,000.
Buyers are able to buy all they want to buy and sellers are able to sell all they want to sell at
a. prices at and above the equilibrium price. b. prices at and below the equilibrium price. c. prices above and below the equilibrium price, but not at the equilibrium price. d. the equilibrium price but not above or below the equilibrium price.
Selling bonds to finance new government debt leads to an opportunity cost that is
A. Greater than when government debt is financed with taxes. B. The same as financing government debt with taxes. C. Less than when government debt is financed with taxes. D. Dependent on who buys the bonds.