A recessionary real shock will:
a. shift the aggregate demand curve to the left and reduce real GDP.
b. shift the aggregate demand curve to the right and increase real GDP.
c. shift the aggregate supply curve to the left and increase real GDP.
d. shift the aggregate supply curve to the left and reduce real GDP.
e. shift the aggregate supply curve to the right and increase real GDP.
d
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When the Fed sells $100 million of securities to a commercial bank, the
A) monetary base increases. B) money supply increases. C) bank's reserves decrease. D) required reserve ratio decreases. E) bank's reserves do not change.
A recent survey by India's central bank reported that spending plans by firms on large new projects fell by 46 percent in the year ending March 2012, compared with the prior year. This decrease will most directly impact
A) physical capital growth. B) human capital growth. C) technological change. D) population growth.
Scarcity is:
A. a fact of life because of limited resources. B. can be eliminated by rational decision making. C. not a problem for Bill Gates because he is a billionaire. D. is a problem studied in microeconomics but is not a macroeconomic concern.
In the Eurozone, labor market integration (including labor mobility) between member nations is:
A) far ahead of the United States. B) on par with the United States. C) less than in the United States. D) structured differently because in the Eurozone workers have better benefits.