Refer to the accompanying figure.
Based on the figure, when PAE = 200 + 0.5Y, short-run equilibrium output equals:
A. 800.
B. 400.
C. 600.
D. 1,200.
Answer: B
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Which of the following is NOT included in the M1 measure of money?
A) currency held outside banks B) currency held in bank vaults C) checking deposits at commercial banks D) checking deposits at credit unions
If a bank has excess reserves of $20,000 and demand deposit liabilities of $80,000, and if the reserve requirement is 20 percent, then the bank has total reserves of
A) $16,000. B) $20,000. C) $26,000. D) $36,000.
“Peak pricing” involves setting lower prices at peak times so that people can afford a good or service.
Answer the following statement true (T) or false (F)
A good example of a market that resembles a contestable market would be
A. electric power production. B. trucking companies. C. auto manufacturing. D. urgent-care clinics.