If the economy is initially at long-run equilibrium and aggregate demand declines, then in the long run the price level
a. and output are higher than in the original long-run equilibrium.
b. and output are lower than in the original long-run equilibrium.
c. is lower and output is the same as the original long-run equilibrium.
d. is the same and output is lower than in the original long-run equilibrium.
c
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If an individual has a 0.3 probability of receiving $10 and a 0.7 probability of receiving $20, the expected income is
A) $20. B) $7. C) $14. D) $17.
Excess reserves are the amount of money a bank
a. is required to hold against its check able deposits. b. is required to hold against its check able deposits and savings accounts. c. has in excess of its required reserves. d. usually holds to be ready to meet unexpected withdrawals.
Consider the following cost information for a monopolist: its MR = $15, its MC = $23, and it is producing 9 units of output. Which of the following statements is correct?
a. The monopolist should produce and sell 9 units of output. b. The monopolist should increase production of output. c. We need more information to decide if the firm needs to produce. d. The monopolist should not produce this output because MR < MC.
New college graduates still looking for their first jobs would be classified in the BLS data as:
A. Frictionally unemployed B. Not yet in the labor force C. Cyclically unemployed D. Part of structural unemployment