When the Fed receives an inflow of Federal Reserve notes, its
A) assets rise.
B) liabilities decline.
C) liabilities increase.
D) assets decline.
B
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In the Modern Keynesian Model the short run aggregate supply curve slopes upward. How could one explain the shape of the upward sloping? short-run aggregate supply curve by only focusing on the capital? input?
A tax on the buyers of cereal will increase the price of cereal paid by buyers,
a. decrease the effective price of cereal received by sellers, and decrease the equilibrium quantity of cereal. b. decrease the effective price of cereal received by sellers, and increase the equilibrium quantity of cereal. c. increase the effective price of cereal received by sellers, and decrease the equilibrium quantity of cereal. d. increase the effective price of cereal received by sellers, and increase the equilibrium quantity of cereal.
The long-run aggregate supply curve is vertical at the level of real output that corresponds to the natural rate of employment.
a. true b. false
The Italian economy can be characterized by Equation 24.1.EQUATION 24.1:C = 300 + 0.8Yd G = 400T = 200I = 200Refer to Equation 24.1. At the equilibrium level of output in Italy, saving equals
A. $400. B. $450. C. $500. D. $550.