On a graph showing the aggregate demand and aggregate supply curves, stagflation can be represented by a:
a. leftward shift of the aggregate supply curve
b. rightward shift of the aggregate supply curve.
c. upward movement along the aggregate supply curve.
d. rightward shift of the aggregate demand curve.
e. upward movement along the aggregate demand curve.
a
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When the Federal Reserve sells $100 worth of government securities, bank reserves
A) rise by $100. B) rise by $100 times the deposit expansion multiplier. C) fall by $100. D) fall by $100 times the deposit expansion multiplier.
There exist only two causes of monopoly: barriers to entry and government restrictions.
Answer the following statement true (T) or false (F)
An increase in short-run aggregate supply is
A) the result of an increase in the price level. B) represented by a movement up along the SRAS curve. C) represented by a rightward shift in the SRAS curve. D) both a and b E) both a and C
If market incentives to produce are too strong, the market will end up producing:
A) too much of the good. B) too little ofthe good. C) a quantity equal to the efficient outcome, as market incentives can never be considered too strong. D) zero output