The economy experiences both ________ and ________ when aggregate supply decreases and aggregate demand remains unchanged.
A. inflation; economic growth
B. deflation; unemployment
C. deflation; economic growth
D. inflation; unemployment
Answer: D
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Suppose the price of a football is $20.00 and the price of a basketball is $10.00. The ________ of a football is ________
A) relative price; 2 basketballs per football B) relative price; 1/2 basketball per football C) opportunity cost; $20.00 D) opportunity cost; $10.00
The nominal interest rate approximately equals which of the following?
A) the real interest rate minus the inflation rate B) the real interest rate plus the inflation rate C) the real interest rate minus the growth rate of real GDP D) the real interest rate plus the growth rate of real GDP
The reserve-requirement ratio
A. is raised for banks that frequently use the Federal Reserve's discount window. B. applies uniformly to all accounts in all financial institutions. C. has been a relatively passive tool of monetary policy. D. implies a potential deposit expansion multiplier of approximately sixteen.
What can a decision-making grid do?
a) tell you the right course of action b) show you every possible consequences of your decision c) help you determine some of the opportunity costs for your decision d) show you every possible benefit of your decisions