As the capital stock grows and technology improves, we would expect the long-run aggregate supply curve to
A) shift right.
B) shift left.
C) remain the same.
D) first shift right, then shift left.
A
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Assume that the reserve—deposit ratio is 0.4. The Federal Reserve carries out open-market operations, purchasing $1,000,000 worth of bonds from banks. This action increased the money supply by $1,750,000. What is the reserve—deposit ratio?
A) 0.2 B) 0.3 C) 0.4 D) 0.5
The unemployment rate:
A. is measured by the number of people who are unemployed divided by the labor force. B. is never zero. C. measures what percentage of our labor force is currently looking for a job and can't find one. D. All of these are true.
Which of the following is not a way that a corporate tax on the income of U.S. car companies will affect markets?
a. The price of cars will rise. b. The wages of auto workers will fall. c. Owners of car companies (stockholders) will receive less profit. d. Less deadweight loss will occur since corporations are entities and not people who respond to incentives.
If there is excess supply
What will be an ideal response?