When policy makers attempt to focus on internal balance, they

A) must be talking only about domestic goals.
B) must be talking about domestic and international goals.
C) must consider both domestic policy and trade.
D) Any of the above might be considered internal balance.


A

Economics

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In the figure below, the economy is initially in long-run equilibrium at point A. If there is an adverse supply shock that reduces potential output and shifts the long-run aggregate supply curve from LRAS to LRAS', then there is initially ________ gap and the short-run aggregate supply curve will ________. 

A. an expansionary: eventually shift to SRAS" B. a recessionary; eventually shift to SRAS' C. an expansionary; eventually shift to SRAS' D. a recessionary; eventually shift to SRAS"

Economics

When the First Bank of Townsville makes a loan, it

A) prints money. B) borrows the money from the Fed. C) creates a checkable deposit. D) decreases the quantity of money. E) increases its reserves.

Economics

The demand for medical care has increased over recent decades because real U.S. income has ______.

a. decreased b. stagnated c. increased d. fluctuated

Economics

If this firm were a perfect competitor, it would produce at _____ units of output and charging a price of _______.


A. 200; $7.00.
B. 200; $12.80.
C. 280; $10.40.
D. 280; $12.00.

Economics