An economy in which output has decreased and prices have increased would suggest that there has been a:
A. negative demand side shock.
B. negative supply side shock.
C. positive demand side shock.
D. positive supply side shock.
Answer: B
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Which of the following would increase disposable personal income?
A) a decrease in taxes paid B) a decrease in personal income C) a decrease in transfer payments received D) All of the above would increase disposable income.
Explain the purpose of the following figure
What will be an ideal response?
Suppose a bank has $6,000 in checkable deposits and the required reserve ratio is 0.2 . If the bank wishes to hold no excess reserves, its actual reserves will be: a. $4,000
b. $1,200. c. $3,000. d. less than $1,000. e. $4,800.
An improvement in the quality of U.S. goods would lead to a ________ in the demand for dollars and a ________ in the exchange rate.
A. rise; rise B. rise; fall C. fall; rise D. fall; fall