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1. According to Classical economic analysis, in the long run an increase in the money supply results in
2. You buy 100 shares in XYZ Corporation on the Internet and your broker charges you $29.95.
Given the graph above, the opportunity cost of four additional units of butter as the economy moves from A to B is
4. In the short run, contractionary monetary policy causes aggregate demand to output to , and the price level to
Aggregate demand Output Price Level
5. Assume the reserve requirement is five percent. If the FED sells $10 million worth of government securities in an open market operation, then the money supply can potentially
6. Given the table below, which statement is true? Labor hours needed to produce a unit of:
Country Wine Cheese
France 40 80
Belgium 15 60
Given the diagram above, what can be expected when the level of income in the economy is $2,000?
8. Suppose taxes are cut in an economy that is in equilibrium at full employment. In the long run the tax cut will
9. As a result of automatic stabilizers, during economic expansions government expenditures
Consider the diagram above. In the short run, stagflation will move the economy from point B to
11. Which of the following shifts the production possibilities frontier outward?
12. In the circular-flow diagram households send to firms in return for