The long-run aggregate supply curve shows
A. the total amount of planned production for an economy.
B. the various quantities of goods consumers will purchase.
C. what an economy can produce if resource prices are constant.
D. that real GDP can only increase when the price level increases.
Answer: A
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U.S. banks are required by law to keep most of their assets as reserves
Indicate whether the statement is true or false
When economists use the terms "supply" and "demand," they are referring to
A) the roles economists must take to improve the economy. B) the plans and ongoing negotiations among individual traders in the market process. C) the ways people meet their needs in society. D) the supply of money and the demand for money. E) the supply of laws and the demand for laws in a well-governed society.
The sale of
A) a used textbook does enter GNP. B) a used textbook does not enter GNP, but the sale of a used house does. C) both a used textbook and a used house do not enter GNP. D) a used house does not enter GNP, but the sale of a used book does. E) the GNP does not include sale of used items priced below $1000.
Joe walks into Best Buy prepared to spend no more than $500 cash on a new computer, but the price turns out to be $600. Joe is told if he finances it on a Best Buy credit card, it will cost $600, but he will get a $25 gift card free with the computer. Joe opts to open the credit card and puts the full $600 on the account. According to economic theory, Joe's decision is:
A. optimal. B. budget-conscious. C. rational. D. irrational.