The real balances effect is the impact on real GDP caused by the ____ relationship between the price level and the real value of financial assets
a. direct
b. inverse
c. independent
d. linear
b
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What sequence of events results from an increase in aggregate demand?
A. The price level falls, inventories increase, firms respond by reducing output and employment. B. The price level rises, inventories increase, firms respond by increasing output and employment. C. The price level falls, inventories decline, firms respond by increasing output and employment. D. The price level rises, inventories decline, firms respond by increasing output and employment.
List the major outcomes from the General Agreement on Tariffs and Trade.
What will be an ideal response?
The bank reserve equation is the
A) assets and liabilities of the entire banking system. B) tally sheet for sources and uses of reserves. C) M1 multiplier. D) Federal Reserve's method of determining how many government securities to purchase.
Billy loses his job as a road construction worker and cannot find another position with equivalent pay and benefits. As a result, he is still checking the want ads and reporting to the unemployment office on a weekly basis. He is considered to be: a. unemployed
b. out of the labor force. c. underemployed. d. lazy.