The aggregate supply curve
A. embodies the same logic that lies behind an individual firm's supply curve.
B. is the sum of the individual supply curves in the economy.
C. relates output with the price level.
D. is a market supply curve.
Answer: C
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Which of the following is true of long-run consumption functions?
a. Autonomous consumption is equal to zero in the long-run. b. The long run consumption functions are steeper than short run consumption functions. c. The marginal propensity to consume for the long run consumption function is almost equal to zero. d. The autonomous consumption is negative in long run consumption functions. e. The long run consumption function is represented by a straight line parallel to the horizontal axis.
A bank currently has demand deposits of $100,000 . reserves of $30,000 . and loans of $70,000 . If the legal reserve requirement is lowered from 20 percent to 15 percent, this bank can increase its loans by
a. $10,000 b. $15,000 c. $75,000 d. $5,000 e. $ 0
When prices rise
a. the rich benefit at the expense of the poor. b. the poor benefit at the expense of the rich. c. both the rich and poor lose real income. d. the effect in the rich and poor is uncertain.
If the price in Canada was C$50 and the price in Switzerland was SFr 100, absolute purchasing power parity would indicate that:
a. The nominal value of the Swiss franc should rise by 100%. b. The nominal exchange rate should be equal to C$2/SFr. c. The nominal value of the Canadian dollar should rise by 100%. d. The nominal exchange rate should be equal to C$0.50/SFr. e. None of the above.