Economic growth is demonstrated by the LRAS as it
A) becomes more vertical. B) shifts to the left.
C) becomes more horizontal. D) shifts to the right.
D
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U.S. banks are required by law to keep most of their assets as reserves
Indicate whether the statement is true or false
Long-run aggregate supply shocks are not a source of business cycle fluctuations in the ________, because ________
A) traditional Keynesian model; long-run supply shocks are incompatible with adaptive expectations B) traditional Keynesian model; demand fluctuations are considered of dominant importance C) real business cycle model; shocks cannot persist in the long run, when prices and wages are flexible D) new Keynesian model; such shocks are anticipated by forward-looking consumers and firms
Compared to a perfectly competitive industry, a monopolist with the same marginal cost and demand curve will charge:
a. a higher price and produce a higher volume of output. b. a lower price and produce a higher volume of output. c. a lower price and produce a lower volume of output. d. a higher price and produce a lower volume of output. e. the same price and produce the same volume of output.
Critics of supply-side economics argue that a major flaw is
a. the small magnitude of supply-side effects. b. the large size of demand-side effects. c. increased income inequality. d. All of the above.