An increase in the reserve supply

A. will result in inflation if the unemployment rate is high.
B. causes interest rates to rise.
C. shifts the aggregate demand curve inward.
D. will probably cause inflation if the economy is at potential GDP.


Answer: D

Economics

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Refer to the figure above, which shows domestic supply and demand. If P1 is equal to P2 (the world price) plus a tariff, then the social loss from the tariff is equal to

A) a + c B) b C) P1 ( Q3 - Q2 ) D) P2 [(Q2 - Q1 ) + (Q4 - Q3 )] E) a + b + c

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Which of the following is a statement with positive economic analysis?

A) Lower wages increase employment and reduce the unemployment rate. B) Slower money growth reduces inflation. C) A reduction in the size of the budget deficit will reduce interest rates. D) all of the above

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In a perfectly competitive industry, which of the following is a market signal to resource owners?

A) economic profits B) quality of goods C) the level of exports in the country D) the level of subsidies the industry receives

Economics

By the early sixteenth century, the center of wealth and commerce of Europe had shifted:

a. from the Baltic to the Mediterranean. b. from the Mediterranean to the Atlantic. c. from Italy to North Africa. d. from France to Africa.

Economics