After the Fed sells a government bond, which of the following is the impetus for the money supply process that follows?
a. Banks now have excess reserves.
b. Banks now have deficient reserves.
c. Banks must print money to purchase the bonds.
d. Banks now have to hold more required reserves.
e. Banks now must be regulated closely.
B
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If actual inflation differs from expected inflation, what is the slope of the aggregate supply curve?
A. The slope is horizontal in the short and long run. B. The slope is vertical in the short and long run. C. The slope is vertical in the short run and upward sloping in the long run. D. The slope is upward sloping in the short run and vertical in the long run.
Suppose the production possibilities for two countries, producing either food or clothing, are shown in the above figure. The United States has a comparative advantage in producing
A) food. B) clothing. C) food and clothing. D) neither good.
Common property resources tend to be
A) overused. B) underused. C) not used at all. D) efficiently used. E) used by the government only.
The quantity of GDP produced per worker, typically measured in quantity of GDP per hour of labor, is known as
a. labor productivity b. capital productivity c. the degree of labor specialization d. the marginal productivity of labor e. the size of the labor force