Sticky wages cause the:
A. short-run aggregate supply curve to slope upward.
B. short-run aggregate supply curve to slope downward.
C. long-run aggregate supply curve to slope upward.
D. long-run aggregate supply curve to slope downward.
A. short-run aggregate supply curve to slope upward.
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In the figure above, the ________ gap is one trillion dollars. To close the gap, the government can change expenditure by ________ one trillion dollars
A) recessionary; less than B) inflationary; exactly C) inflationary; more than D) recessionary; more than E) recessionary; exactly
Bank A has checkable deposits of $800,000 and total reserves of $200,000. If the required reserve ratio is 0.11, the bank has required reserves of
a. $600,000. b. $88,000. c. $112,000. d. $22,000.
Suppose buyers in the used car market are willing to pay $3,500 for a plum (high-quality) used car and $1,500 for a lemon (low-quality) used car. If buyers believe that 30% of the used cars on the market are lemons (low quality), what would they be willing to pay for a used car?
A. $2,000 B. $2,500 C. $2,900 D. $3,500
Refer to the information provided in Figure 4.6 below to answer the question(s) that follow.Equilibrium in this market occurs at the intersection of curves S and D.
Figure 4.6Refer to Figure 4.6. The deadweight loss due to underproduction is area [C + F] if price is
A. P1. B. P2. C. P3. D. > P3.