A consumer is in equilibrium, that is, a consumer is maximizing her utility when marginal utility and price are equal for each of the goods the consumer purchases
Indicate whether the statement is true or false
FALSE
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The consolidated balance sheet of the all banks in Macroland is presented below: AssetsLiabilitiesCurrency$1,000Deposits$1,000Loans$ 900 Based on this balance sheet the banking system of Macroland can be described as a(n) ________ banking system.
A. 100-percent-reserve B. barter C. fractional-reserve D. government-insured
While on the gold standard prior to 1914, an ounce of gold could be redeemed for ________ , after World War II it could be redeemed for ________
a. $4; $20 b. $4; $5 c. $20; $35 d. $4; $35
The supply of antiques is highly inelastic so increases in demand have a large effect on increases in price.
Answer the following statement true (T) or false (F)
To achieve long-run equilibrium in an economy with a recessionary gap, without the use of stabilization policy, the inflation rate must:
A. not change. B. increase. C. decrease. D. either increase or decrease depending on the relative shifts of AD and AS.