The difference between currency outstanding and currency in circulation is equal to
A) vault cash.
B) bank reserves.
C) coins issued by the U.S. Treasury.
D) zero; they are the same thing.
A
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When more labor is unemployed than the amount at the natural unemployment rate, then real GDP ________ potential GDP
A) is equal to B) is less than C) is greater than D) cannot be compared to
Present value:
A. is always greater than the future value of money. B. does not account for inflation. C. is how much an amount of money obtained in the future is worth today. D. All of these statements are true.
A closed shop is one in which
A. some members belong to the union while others do not. B. a union is prohibited. C. the union is a co-manager of the day-to-day operations of the firm. D. belonging to a union is a condition of employment.
Answer the following questions true (T) or false (F)
1. Suppose real GDP is $13 trillion and potential real GDP is $13.5 trillion. If Congress and the president increase government purchases by $500 billion, then the economy will be brought to equilibrium at potential real GDP. 2. In the case of an upward-sloping aggregate supply curve, the change in real GDP brought about by a change in government spending will be less than that predicted by the simple government purchases multiplier. 3. Crowding out refers to a decrease in government purchases as a result of an increase in private expenditures.