The wealth effect, the interest rate effect, and the international trade effect account for the:
a. positive slope of the short-run aggregate supply curve.
b. the shape of the long-run aggregate supply curve.
c. positive slope of the aggregate demand curve.
d. negative slope of the aggregate demand curve.
e. negative slope of the short-run aggregate supply curve.
d
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According to the Application, the Fed started paying interest to banks on reserves. Since this change has occurred
A) all total reserves are now excess reserves. B) total reserves are finally equal to required reserves. C) required reserves now exceed total reserves. D) total reserves now far exceed required reserves.
The process of deciding on and passing fiscal policy legislation creates:
A. an information lag. B. a formulation lag. C. an implementation lag. D. a direction lag.
Which of the following is an example of a pure public good?
a. a bus b. a mall c. a teddy bear d. an army e. an automobile
Explain why marginal revenue is less than price for a monopolist.
What will be an ideal response?