The slope of the supply curve of reserves can be attributed to the fact that:
A) quantity supplied of reserves decreases with the federal funds rate.
B) the supply of reserves is arbitrarily set by the World Bank.
C) the Fed fixes the supply of reserves.
D) quantity supplied of reserves increases with the federal funds rate.
C
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"Cost disease" refers to the tendency for high productivity in the service sector to lead to lower costs in those industries
Indicate whether the statement is true or false
Most markets in the U.S. economy are perfectly competitive
Indicate whether the statement is true or false
An abnormally large grain crop due to highly favorable weather conditions in the Midwest is an example of
a. a technological improvement that will increase long-run aggregate supply. b. a supply shock that will increase short-run aggregate supply. c. an unexpected development that will reduce the natural rate of unemployment. d. an unexpected development that will lead to excess supply and widespread unemployment.
Consider the labor market for short-order cooks. A shortage in the availability of frying pans will cause
a. both equilibrium wages and equilibrium employment to increase. b. both equilibrium wages and equilibrium employment to decrease. c. equilibrium wages to increase and equilibrium employment to decrease. d. equilibrium wages to decrease and equilibrium employment to increase.