According to the consensus view, when demand increases near full employment,
A. Both the price level and real GDP increase.
B. The price level increases, but real GDP stays the same.
C. Real GDP increases, but the price level stays the same.
D. The price level decreases, but real GDP increases.
Answer: A
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The Federal Reserve will engage in a matched sale-purchase transaction when it wants to ________ reserves ________ in the banking system
A) increase; permanently B) increase; temporarily C) decrease; temporarily D) decrease; permanently
Second-degree price discrimination is the practice of charging
A) the reservation price to each customer. B) different prices for different quantity blocks of the same good or service. C) different groups of customers different prices for the same products. D) each customer the maximum price that he or she is willing to pay.
Refer to the above table. The balance of trade is
A) $1000. B) -$665. C) +$335. D) -$155.
Between 1989 and 1994 the poverty rate went _____.
A. down substantially B. down slightly C. up slightly D. up substantially