A decrease in aggregate supply can result in:
a. unemployment.
b. demand-pull inflation.
c. prosperity.
d. cost-push inflation.
e. a recession.
d
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When the market basket is tracked over time the goods within the basket:
A. remain the same, so only changing prices are captured. B. reflect the typical consumer each year, so it captures how consumers are affected each year. C. reflect the typical consumer each year, but prices are held constant, so it captures if we are consuming more or less as an economy. D. remain the same, but some prices are held constant on items that are important to consumers.
Assume that the central bank purchases government securities in the open market. If the nation has highly mobile international capital markets and a flexible exchange rate system, what happens to the real GDP and current international transactions in the context of the Three-Sector-Model?
a. Real GDP rises, and current international transactions become more positive (or less negative). b. There is not enough information to determine what happens to these two macroeconomic variables. c. Real GDP rises, and current international transactions remain the same. d. Real GDP falls, and current international transactions become more negative (or less positive). e. Real GDP and current international transactions remain the same.
If M3 were 2,000, small denomination time deposits were 300, and large denomination time deposits were 400, how much would M2 be?
Fill in the blank(s) with the appropriate word(s).
Economic interactions with others are necessary because
A. Resources are limited. B. People are lazy. C. Advertising makes us want additional goods and services. D. Some people are rich and others are poor.