Refer to the graph below. Suppose that the economy is at an initial equilibrium where the AD1 and AS1 curves intersect. Demand-pull inflation in the short run can best be represented as a shift of:
A. AS1 to the right
B. AD1 to the right
C. AS1 to the left
D. AD1 to the left
B. AD1 to the right
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Money must be ________ which includes the fact that is should ________
A) generally accepted as a means of payment; be recognizable and divisible into small parts B) backed by gold; not decrease in value over time C) whatever is used in a barter system; transferable across countries' borders D) accepted as a means of payment across countries' borders; not be fiat money E) in physical form; not be transferable using electronic means
When commercial banks extend loans, they are able to expand the supply of money in the United States because the U.S. has
What will be an ideal response?
A decreasing-cost industry will have
A) a perfectly elastic long-run supply curve. B) a perfectly inelastic long-run supply curve. C) an upward sloping demand curve in the long run. D) a downward sloping supply curve in the long run.
State and local taxes as a group seem to be mildly progressive, but federal taxes as a group seem to be mildly regressive.
Answer the following statement true (T) or false (F)