Which of the following statements about business cycles is correct?
a. Business cycles are always caused by demand-side effects
b. Business cycles are always caused by supply-side effects
c. Business cycles are always initiated by domestic-based shocks
d. Business cycles are always initiated by foreign-based shocks.
e. Business cycles can originate in the real, social, financial, and/or political sector.
.E
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The long-run aggregate supply curve is ________.
A. vertical B. upward-sloping and becomes flatter at output levels above the full-employment output C. upward-sloping and becomes steeper at output levels above the full-employment output D. horizontal
An initial deficiency in reserves of $20 and a required reserve ratio of .5 lead to a maximum demand deposit contraction of
A) $8. B) $40. C) $50. D) $80.
Which of the following would not affect an individual's demand?
A. Prices of related goods B. The individual's preferences C. The individual's income D. The costs of inputs
Answer the following statement(s) true (T) or false (F)
1. As long as it is generally accepted in exchange for services and goods, anything can be considered money. 2. Money has two main economic functions: to act as a medium of exchange and to act as a store of value. 3. Naya knows that a pound of wild rice costs $3.49 and that a pound of granulated sugar costs $0.89. The fact that she can determine this illustrates money’s function as a means of stored value. 4. Fiat money is money that has been established by custom or tradition. 5. Savings deposits are considered part of the M2 definition of money, but not the M1 definition.