An upward sloping short-run aggregate supply curve suggests that
A) prices and wages are completely inflexible.
B) prices and wages adjust in part to short-run demand changes.
C) prices and wages are completely flexible.
D) real GDP is determined by aggregate supply.
B
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In the economy of Brightland, the commercial banks have deposits of $600 billion. Their reserves are $60 billion. All reserves are in deposits with the Central Bank and the commercial banks hold no excess reserves
There is $120 billion in Central Bank notes outside the banks, and there are no coins. a) What is the economy's monetary base? b) What is the quantity of money in the economy? c) Calculate the money multiplier. d) Suppose the Central Bank of Brightland undertakes an open market purchase of securities of so that the monetary base increases by $5 billion. By how much will the quantity of money change?
Calculate t-statistics for each variable and explain what this tells you
What will be an ideal response?
A common resource is best described as a resource where
A) there is a positive externality in consumption. B) there is a negative externality in consumption. C) there is a positive externality in production. D) there is a negative externality in production.
Refer to the information provided in Table 24.2 below to answer the question(s) that follow. Table 24.2
Refer to Table 24.2. The equilibrium level of output is ________ billion.
A. $1000 B. $1,500 C. $2,000 D. $2,500