Which of the following supply shocks would shift the aggregate supply curve inward?
a. A decrease in business taxes
b. A decrease in gasoline taxes
c. A decrease in the cost of raw materials
d. A decrease in agricultural output
e. A decrease in the amount and cost of government regulation
d
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Carl opens a 5-year CD for $1,000 that pays 3% interest compounded annually. What is the value of the CD at the end of five years?
a. $1,159 b. $1,126 c. $1,300 d. $1,150
The money supply is best described as being:
A. determined by the amount of reserves. B. fixed, to avoid inflation. C. endogenously determined by the monetary system. D. determined by the size of the money multiplier.
If the market price for a crop is $4.00 a bushel, and the price support is $3.00, then raising the price support to $3.50
A. will cause the price paid by consumers to rise. B. will cause the price received by farmers to fall. C. will cause nothing to happen. D. will cause the price received by farmers to rise.
In a free market economy, the market clearing (equilibrium) price in the above table would adjust to
A) $1. B) $3. C) $4. D) $5.