Given implicit or explicit resource price agreements, if the actual price level is below the expected price level in an economy, the _____
Fill in the blank(s) with the appropriate word(s).
economy will move downward along the short-run aggregate supply curve.
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Fixed exchange rate regimes
A) existed prior to the nineteenth century but were then superseded by the gold standard. B) lower the transactions costs of buying and selling goods and assets. C) result in higher world interest rates. D) were first established by the GATT in 1971.
Specialization refers to
a. one person performing a wide variety of tasks b. labor replacing capital in production c. capital replacing labor in production d. limiting the number of tasks a resource performs e. performing all tasks with only one resource
What does it mean to "monetize the deficit"? Why is it important in discussions of fiscal policy? Use an appropriate diagram to illustrate your answer
When the Fed raises the required reserve ratio, the banks' excess reserves will initially ________ and the money supply ________.
A. remain constant; decreases B. increase; remain constant C. increase; increases D. decrease; decreases