If a hurricane were to wipe out the majority of the eastern seaboard in the United States:
A. neither the short-run nor long-run aggregate supply curves would be affected.
B. only the long-run aggregate supply curve would shift left.
C. only the short-run aggregate supply curve would shift left.
D. the long-run and short-run aggregate supply curves would both shift left.
Answer: D
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Which of the following is a name for when a bank promises to lend funds to a borrower to pay off its commercial paper?
A) loan commitment B) standby letter of credit C) securitization D) loan sale
Refer to the graph shown. At which point is elasticity zero?
A. A B. B C. C D. D
If equilibrium GDP exceeds full-employment GDP,
A. The difference is the inflationary GDP gap. B. Inventories will accumulate. C. The difference is the recessionary GDP gap. D. Leakages must be greater than injections.
The belief that the velocity of money is not constant but highly predictable is associated with the:
a. Keynesian school. b. monetarist school. c. rational expectations school. d. supply-side school. e. classical school.