Little inflation will occur if the aggregate supply curve is flat.
Answer the following statement true (T) or false (F)
True
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If a fair game is played many times the monetary losses or gains will:
a. approach zero. b. be negative. c. be positive. d. result in an outcome that cannot be determined without more information.
Poor nations typically have a competitive advantage in agricultural goods because of
A. Plenty of land. B. Low labor costs. C. High productivity. D. Entrepreneurial incentives.
Ambassador Bank has $5 million in deposits and $750,000 in reserves, with a reserve requirement ratio of 15 percent. If the Fed lowers the reserve requirement ratio to 12 percent, Ambassador Bank’s new excess reserves could potentially expand the money supply by ______.
a. $1,000,000 b. $150,000 c. $1,250,000 d. $250,000
The neoclassical model focuses on the underlying determinants of output and employment in markets, and thus tends to put more emphasis on
a. inflation and recessions. b. economic growth and how labor markets work. c. economic growth and how labor markets work. d. economic growth and inflation.