In the above figure, an increase in aggregate demand has resulted in
A. economic growth.
B. an inflationary gap.
C. a decline in the price level.
D. a recessionary gap.
Answer: B
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By taking the short position on a futures contract of $100,000 at a price of 115 you are agreeing to ________ a ________ face value security for ________
A) sell; $100,000; $115,000. B) sell; $115,000; $100,000. C) buy; $100,000; $115,000. D) buy; $115,000; $100,000.
Assume that foreign capital flows from a nation increase due to political uncertainly and increased risk. If the nation has highly mobile international capital markets and a fixed exchange rate system, what happens to the reserves account and monetary base in the context of the Three-Sector-Model? a. The reserves account falls and monetary base falls
b. The reserves account rises and monetary base falls. c. The reserves account and monetary base remain the same. d. There is not enough information to determine what happens to these two macroeconomic variables.
Carla is deciding whether to go to the movies this afternoon. Behavioral economists predict Carla likely will:
A. over-value her opportunity cost. B. have a difficult time accurately valuing the benefit of the movie. C. have a hard time accurately valuing her opportunity cost of the movie. D. All of these are true.
Which of the following groups receives the highest wages?
A) high school drop-outs B) college drop-outs C) individuals who complete a bachelor's degree program D) individuals with advanced degrees