The inflation associated with the oil embargoes of the 1970s resulted in:
a. reduced unemployment because aggregate demand increased.
b. reduced unemployment because aggregate demand fell
c. increased unemployment because aggregate demand increased.
d. increased unemployment because aggregate demand fell.
e. increased unemployment because aggregate supply fell.
e
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If the money supply in an economy is $100,000, currency in circulation is $50,000, amount in savings accounts is $18,000, travelers' checks is $12,000, and the amount in money market accounts is $9,000,
then what is the amount held in checking accounts in the economy?
When contemplating the purchase of a resource, the pure monopsonist should do which of the following to maximize profit?
A) Purchase enough to make the marginal expenditure equal to the marginal revenue product. B) Purchase enough to make the average expenditure equal to the marginal revenue product. C) Pay a wage equal to the value of MRP at the intersection of MRP and ME curves. D) Pay a wage equal to the value of MRP at the intersection of AE and MRP curves.
Graphically, the effects of an external benefit can be shown as
A) a leftward shift of the market demand curve. B) a leftward shift of the market supply curve. C) a downward movement along the market demand curve. D) a rightward shift of the market demand curve.
If the MPC is 0.75, and the government cuts spending by $100b, the overall effect on GDP will be:
A. an increase of $400b. B. a decrease of $250b. C. a decrease of $400b. D. an increase of $250b.