The downward-sloping aggregate demand curve is partly due to the:
A. positive relationship between the price level and net exports.
B. negative relationship between the price level and net exports.
C. positive relationship between the price level and government spending.
D. negative relationship between the price level and government spending.
B. negative relationship between the price level and net exports.
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A person who previously had a full-time job has been paroled from prison and has applied for a job is considered
A) a reentrant. B) a job loser. C) a new entrant. D) not in the labor force.
Supply-side economics stress that: a. aggregate demand is the major determinant of real output
b. higher tax rates discourage people from working and investing as much as they would at lower tax rates. c. an increase in government expenditures and tax rates will cause real income to rise. d. expansionary monetary policy will cause real output to expand without accelerating inflation.
Arbitrageur is someone who buys or sells foreign exchange in hopes of profiting from fluctuations in the exchange rate over time
Indicate whether the statement is true or false
Bank runs
a. will affect neither the money supply nor the money multiplier. b. increase the money supply. c. can be neither prevented nor mitigated by the Federal Reserve. d. are a problem because banks only hold a fraction of deposits as reserves.