Refer to Figure 16-6. In the dynamic model of AD-AS in the figure above, if the economy is at point A in year 1 and is expected to go to point B in year 2, Congress and the president would most likely
A) increase taxes.
B) increase the money supply and decrease the interest rate.
C) increase government spending.
D) increase oil prices.
E) raise interest rates.
A
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In the above figure, the curve's slope is
A) positive and is becoming steeper. B) positive and is becoming less steep. C) negative and is becoming steeper. D) negative and is becoming less steep.
The reason U.S. workers were better paid than foreign workers during the 1950s and 1960s is
A. U.S. workers were better trained and educated. B. U.S. workers worked harder. C. we had more capital (plant and equipment) per worker. D. the U.S. dollar was the world's strongest currency.
If Fifth Third Bank had actual reserves of $1 billion and required reserves of $1.1 billion, its excess reserves would be
A. $1 billion. B. $100 million. C. 0. D. -$100 million.
Which of the following is a reason behind income being considered a tax base? a. It is earned
b. It is subsidized. c. It is taxed. d. It is used to buy goods and services.