Figure 10-1
If the price level in Figure 10-1 were 110,
a.
inventories would be accumulating.
b.
firms would have to lower their prices.
c.
aggregate quantity demanded would equal aggregate quantity supplied.
d.
shortages of goods would exist.
c
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The formula for finding the present value of an amount M that will be received one year from now, when the interest rate is R, is
A) M × (1 + R/100). B) M × (1 + R). C) M / (1 + R). D) M / R. E) M / (100R).
The circular flow model assumes:
a. businesses and households own the factors of production. b. businesses own the factors of production. c. government owns the factors of production. d. households own the factors of production. e. firms, households, and the government own the factors of production.
If the government engages in contractionary fiscal policy a likely reason would be:
A. they think the economy is not growing fast enough and they want to speed it up. B. people are not spending enough money and they want to boost spending. C. the economy is operating at a level that is just below full employment. D. they think the economy is growing too quickly and they want to slow it down.
Members of the Federal Reserve Board of Governors are ______.
a. elected by the U.S. public for lifetime terms b. appointed by the U.S. president for terms of 14 years c. appointed and removed according to the votes of Fed member banks d. chosen at random from the heads of the 12 regional Fed banks, every four years