When the housing bubble popped, the effect of the negative demand side shock and the negative supply side shock were the same on:
A. output, causing it to definitely decrease.
B. prices, causing them to definitely rise.
C. output, causing it to definitely increase.
D. prices, causing them to definitely fall.
Answer: A
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Elizabeth's opportunity cost of selling a widget is $18, while Jess values it at $27 . Identify the correct statement from the following
a. Jess can threaten to go to another seller if the transaction benefits Elizabeth more than her. b. The core is of the zone of agreement. c. The core consists of prices above $27, which benefits both parties. d. Elizabeth can threaten to go to another seller if the transaction benefits Jess more than her.
To calculate GDP in 2000, you would subtract the value of goods exported in 2000
Indicate whether the statement is true or false
Citizens Bank confronts a reserve requirement of 20 percent and currently holds millions of dollars in excess reserves. If a depositor withdraws $35,000 . the excess reserves of the bank will
a. decline by $7,000. b. decline by $35,000. c. decline by $28,000. d. increase by $7,000.
To reduce inflation, the federal reserve could
a) expand money supply in order to raise interest rates, which increases investment b) expand money supply in order to lower interest rates, which increases investment c) contract money supply in order to lower interest rates, which increases investment d) contract money supply in order to raise interest rates, which decreases investment e) buy bonds and increase discount rate to encourage borrowing