If aggregate demand turns out to be higher than what was anticipated in an economy, then:
a. the economy experiences a contractionary gap.
b. the short-run equilibrium occurs at the potential output.
c. the short-run equilibrium occurs at an output level lower than potential output.
d. the short-run equilibrium occurs at an output level higher than potential output.
d
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Factors tend to be specific to certain uses and products
A) in the short run. B) in countries lacking comparative advantage. C) in capital-intensive industries. D) in labor-intensive industries. E) in countries lacking fair labor laws.
Lowering the discount rate: a. encourages banks to borrow from the Fed, and they can more easily accommodate their customers' needs for loans. b. encourages business customers to borrow directly from the Fed
c. reduces the amount of reserves banks are required to keep. d. automatically reduces excess reserves. e. encourages banks to sell U.S. government securities and increase their cash reserves.
_______________ are inputs or ingredients mixed together by a firm through its technology to produce output
Fill in the blank(s) with the appropriate word(s).
People learn to hold a specific quantity of money for the groceries, theater tickets, gasoline, clothes, film, and other items they habitually purchase. This behavior is representative of the:
A. precautionary demand. B. speculative demand. C. transactions demand. D. volatility demand.