Falling output, in the short run, could be due to:
A. an increase in short-run aggregate supply.
B. a reduction in aggregate demand.
C. an increase in long-run aggregate supply.
D. an increase in aggregate demand.
Answer: B
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The Fed conducts an open market operation and increases a bank's excess reserves by $2,000
Explain the first five rounds of the money creation process if the desired reserve ratio is 25 percent and if people keep no currency outside of the banking system.
Anita is the retired president of Claddagh College and currently serves on the board of directors of the Patrician Pharmaceutical Company. Anita is considered ________ of the company
A) a silent partner B) an outside director C) a managing director D) an inside director
As a function of real GDP (real GDP being measured on the horizontal axis), autonomous investment is represented by a(n):
a. U-shaped curve. b. vertical line. c. positively sloped line. d. negatively sloped line. e. horizontal line.
In the long run, if the inflation rate is positive, a currency depreciates to maintain purchasing power parity
a. True b. False