The area below the price and above the supply curve measures the producer surplus in a market
a. True
b. False
Indicate whether the statement is true or false
True
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Suppose Jennifer has $42,000 in currency which she deposits in her bank. If the reserve ratio is 50 percent, this will lead to a maximum increase of ________ in M1 throughout all banks
A) $0 B) $21,000 C) $42,000 D) $84,000
In the early 1980s, many savings-and-loan associations pretended to be solvent by
A) valuing their assets on a historical cost basis. B) underreporting the amount of their liabilities. C) including the impact of high interest rates on the value of their assets. D) counting "goodwill" as an asset.
A consequence of an inflationary gap is ____ as output begins to decrease and prices continue to increase.
A. stagflation B. reflation C. disinflation D. perflation
If the economy is operating on the relatively vertical segment of the aggregate supply curve, an increase in government spending causes a _____ change in the price level and a _____ change in output.
a) big; big b) big; small c) small; big d) small; small