Suppose we observe an economy experience an economic expansion and high inflation. This means the expansion is attributed to
a. growth in aggregate demand.
b. growth in aggregate supply.
c. a reduction in aggregate demand.
d. a reduction in aggregate supply.
a
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If individuals are convinced that the government will take care of all their medical needs after they retire, then
A) the supply of loanable funds will shift rightward. B) the supply of loanable funds will shift leftward. C) the demand for loanable funds will shift rightward. D) the demand for loanable funds will shift leftward.
If an economy's exports are $600 billion and its imports are $750 billion, its net exports are
A) $1,550 billion B) $150 billion C) -$150 billion D) 1.07.
The rate at which banks can borrow excess reserves from other banks is equal to
A) the discount rate. B) the required reserve ratio. C) the interest rate paid on reserves held with the Fed. D) none of the above.
If a regulatory agency forces a natural monopolist to stop charging monopoly prices and start charging competitive prices,
a. taxpayers will have to subsidize the firm b. price will fall below AVC c. the monopolist will shut down d. stockholders will benefit e. quantity produced will increase