In the graph showing an increase in aggregate demand, moving from point A to point B indicates ______ of aggregate demand.
a. prices will decrease
b. prices will increase
c. RGDP will decrease
d. unemployment will increase
b. prices will increase
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A tariff is
a. a tax on imports b. a legal limit on quantities of goods that can be imported c. a voluntary limit on quantities of goods that can be imported d. a quality restriction on imports e. a subsidy for exports
When a producer's demand curve is a horizontal straight line, we know that
a. market demand is horizontal as well b. there is considerable brand loyalty for the producer's good c. the producer is a monopolist d. the producer has significant market share e. the producer is in a perfectly competitive industry
Assume all banks in the system started have a 10 percent required reserve ratio and the Fed made a $20,000 open market purchase. The result would be a(n):
A. $200,000 expansion of the money supply. B. $20,000 expansion of the money supply. C. $20,000 contraction of the money supply. D. infinite contraction of the money supply.
In 2008, as a result of a run on government-sponsored enterprise debt, the U.S. Treasury placed fannies me and Freddie Mac in:
A. bankruptcy. B. receivership. C. conservatorship. D. trusteeship.