The standard long-run model assumes that:
A. technology improves at an increasing rate over time.
B. technology is fixed.
C. technological advance is impossible.
D. costs of production are fixed.
Answer: B
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A standard definition of recession is
A) a period of expansion in many sectors of the economy. B) an increase in GDP that lasts for at least 6 months. C) a decrease in GDP that lasts for at least 6 months. D) an increase in unemployment from one month to the next. E) a period of time when the unemployment rate exceeds 6.5 percent.
The maximum money that can be created by the entire banking system is equal to a multiple of its excess reserves
a. True b. False Indicate whether the statement is true or false
today the futures price for corn for december delivery in chicago is $3.30/bu and yesterday it was $3.40/bu. today the local cash price is $3.05/bu/ today, the local basis is:
a) $0.35/bu b) -$.035/bu c) $0.25/bu d) -$0.25/bu e) not enough information is provided
In Macroland there is $10,000,000 in currency. The public holds half of the currency and banks hold the rest as reserves. If banks' desired reserve/deposit ratio is 10 percent, deposits in Macroland equal ________ and the money supply equals ________.
A. $50,000,000; $55,000,000 B. $50,000,000; $60,000,000 C. $55,000,000; $55,000,000 D. $100,000,000; $100,000,000