The ratio of money created by the lending activities of the banking system to the money created by the government's central bank is called the:
A. money multiplier.
B. reserve ratio.
C. federal funds.
D. demand deposits.
A. money multiplier.
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Based on the figure below. Starting from long-run equilibrium at point C, a tax cut that increases aggregate demand from AD to AD1 will lead to a short-run equilibrium at point ________ and eventually to a long-run equilibrium at point ________, if left to self-correcting tendencies. 
A. D; C B. B; C C. B; A D. D; B
Define a Pareto efficient outcome. Does it ensure equity? Explain with an example
What will be an ideal response?
Positive externalities can be internalized using persuasion, but persuasion is not effective with negative externalities.
Answer the following statement true (T) or false (F)
The most obvious measure of low levels of economic development is low _____.
Fill in the blank(s) with the appropriate word(s).