When cash is deposited in a checkable-deposit account at a bank, there is:
A. A decrease in the money supply M1
B. An increase in the money supply M1
C. An increase in the bank's net worth
D. An increase in the bank's liabilities
D. An increase in the bank's liabilities
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The unemployment rate is calculated by dividing the number of unemployed and looking for work by the sum of the number employed and the number unemployed and looking for work
Indicate whether the statement is true or false
Suppose the market clearing price for apples rises from $2.00 to $3.00 per pound, and the overall market clearing output decreases from 1 million to 1/2 million pounds. How can we explain the increase in price and decrease in market output?
A) Supply decreased and demand remained unchanged. B) Supply increased and demand remained unchanged. C) Demand increased and supply remained unchanged. D) Demand decreased and supply remained unchanged.
An example of a supplier that used its bargaining power to charge high prices to its customers is
A) the firms that supply paper napkins to McDonald's restaurants. B) the publishers of the Encyclopedia Britannica. C) Wal-Mart, which required many of its suppliers to alter their distribution systems to accommodate Wal-Mart's need to control the flow of goods to its stores. D) the Technicolor Company, the sole producer of cameras and film that movie studios needed to produce color movies in the 1930s and 1940s.
What are some of the explanations offered for why the U.S. economy experienced a period of relative stability from 1950-2007?
What will be an ideal response?