If a bank subject to a 10% required reserve ratio has $10,000 in excess reserves, it can extend, at a maximum, which quantity of new loans?
A. $1,000
B. $9,000
C. $10,000
D. $100,000
C. $10,000
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The short-run elasticity of supply is less than the long-run elasticity of supply
A) because consumers' tastes and preferences change in the long run but not in the short run. B) because producers can adjust the amount of machinery in the long run but not in the short run. C) only for durable goods. D) only for non-durable goods.
Starting from long-run equilibrium, a war that raises government purchases results in ________ output in the short run and ________ output in the long run.
A. lower; potential B. higher; potential C. higher; higher D. lower; higher
An economist builds a model by beginning with certain self-evident principles and then derives the implications of that model. What approach is this economist taking?
A. Deductive B. Experimental C. Apophatic D. Inductive
The Bureau of Labor Statistics (BLS) would calculate the rate of inflation in year 5 by
What will be an ideal response?