According to modern Keynesian analysis, an increase in aggregate demand leads to a higher price level because the
A) aggregate demand curve is upward sloping.
B) short-run aggregate supply curve is upward sloping.
C) aggregate demand curve is upward horizontal.
D) short-run aggregate supply curve is vertical.
B
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The oil depletion formula discussed in the chapter uses "proven resources" in its calculation. Explain what these "proven resources" are with respect to known and unknown oil reserves, and economical and uneconomical oil extraction met
What will be an ideal response?
________ increases with education, training, and job experience. i. Physical capital ii. Human capital iii. Financial capital
A) i only B) ii only C) iii only D) Both ii and iii E) i, ii, and iii
In the short run, a supply shock that shifts the short-run aggregate supply curve leftward raises the price level and increases real GDP
Indicate whether the statement is true or false
Jan's Dry Cleaning holds $10,000 on a typical day, although only $2,000 is essential for carrying out business. Making a midday deposit is estimated to reduce cash holdings to $8,000 and cost an extra $80 per year in lost production. If, in addition, an armored car service is engaged to pick up cash more frequently for a fee of $120 per year, cash holdings will be further reduced to $6,000 per day. Employing a computerized cash management service for an annual fee of $180 would reduce cash holdings further to $4,000. If any reduction in cash holdings will be invested in government bonds earning 3%, then how much money should Jan's hold?
A. $4,000 B. $8,000 C. $6,000 D. $10,000