Use the following graph to answer the next question.
In the diagram, Qf is the full-employment output. A contractionary fiscal policy would be most appropriate if the economy's present aggregate demand curve were at
A. AD0.
B. AD1.
C. AD2.
D. AD3.
Answer: D
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The total number of people aged 16 years and over who are not institutionalized ________
A) equals the number of employed plus unemployed B) is the working-age population C) does not include students D) is the labor force
International economics can be divided into two broad sub-fields
A) macro and micro. B) developed and less developed. C) monetary and barter. D) international trade and international money. E) static and dynamic.
"Real money balances" refers to ________
A) the quantity of goods and services that money can buy B) gold and silver C) money that is actually available to be spent D) all of the above E) none of the above
The required reserve ratio is
a. the minimum fraction of vault cash balances that banks must hold as reserves. b. the minimum fraction of all assets that banks must hold as reserves. c. the minimum fraction of all liabilities that banks must hold as reserves. d. the minimum fraction of checking account balances that banks must hold as reserves. e. the minimum fraction of loans that banks must make sure are repaid.