When the reserve requirement is increased:
A. required reserves are changed into excess reserves.
B. the excess reserves of member banks are increased.
C. a single commercial bank can no longer lend dollar-for-dollar with its excess reserves.
D. the excess reserves of member banks are reduced.
D. the excess reserves of member banks are reduced.
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Refer to the figure below.________ inflation will eventually move the economy pictured in the diagram from short-run equilibrium at point ________ to long-run equilibrium at point ________. 
A. Rising; A B. Falling; A; C C. Falling; B: C D. Rising; A; C
The supply-side effect of higher tax rates would include a fall in the economy's potential GDP
a. True b. False Indicate whether the statement is true or false
Which of the following explains why managers of government agencies have little incentive to achieve operational efficiency?
a. Public-sector managers need not fear bankruptcy when operational efficiency is not achieved. b. Public-sector managers seldom receive personal benefits if they find ways to improve the efficiency of their operations. c. Public-sector agencies typically do not face competition. d. All of the above explain why government agencies have little incentive to be efficient.
Productive efficiency implies
A) the possibility of gains in one area without losses in another. B) that more output has been produced. C) the impossibility of gains in one area without losses in another. D) that prices are stable. E) c and d