In the recent Global Economic Crisis, the negative wealth effect caused
A) LM curve to shift to the right.
B) LM curve to shift to the left.
C) IS curve to shift to the left.
D) LM curve to shift to the right.
C
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Tim is working on a school report on the proposed merger between American Airlines and U.S. Airways
He finds that U.S. Airways' annual revenue for 2012 rose by 3.7 percent over the previous year, while the revenue for American Airlines recorded an increase of almost 6 percent. Based on this, he concludes that, in 2012, passenger traffic must have increased more for American Airlines than for U.S. Airways. Is Tim's conclusion correct? Explain your answer.
Which of the following reflects the concept of required reserves?
A. The money multiplier is greater than 1. B. Required reserves are equal to total reserves. C. Excess reserves are equal to 0. D. Banks can lend only their required reserves.
Frictional unemployment best defined as
A. Deviation of unemployment from its natural rate B. Unemployment of people who do not want to work. C. Chronic unemployment due to wages not balancing supply and demand D. Unemployment due to individuals search for new job.
Which of the following is the most aggregated value?
A. Total output of a city B. Total output of a country C. Total output of a firm D. Total output of an industry