Write the mathematical expression that summarizes the three alternative explanations for the upward slope of the short run aggregate supply curve
Quantity of output supplied = natural rate of output + a(actual price level - expected price level)
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Banks in need of reserves can borrow from the Fed or in the federal funds market
a. True b. False Indicate whether the statement is true or false
Which one of the following factors contributed to the decline in real output during the Great Depression?
a. deflation, which changed the terms of long-term contracts and discouraged long-term exchange b. inflation, which reduced the value of the dollar and eroded the savings of the elderly c. stable monetary policy, which caused business decision makers to lose confidence in the Fed's ability to fine-tune the economy d. establishment of the Federal Deposit Insurance Corporation
When Thomas Malthus argued that the prospects for human flourishing were gloomy and that starvation would eventually become the normal human condition, he was assuming that
A. self-interest will become more intense and religion will cease to be an influential force in society. B. epidemics will overpower the many technological advances that he expected. C. diminishing returns to production will become more apparent. D. diseconomies of scale will become more commonplace.
The FDIC
A. insures most bank deposits for up to $250,000. B. eliminates the need for bank depositors to run to their bank when they hear bad news about the bank. C. has been credited with reducing the number of bank failures since 1933. D. All of these responses are correct.