ECON 3
Daisy loans Alfred $10,000 and a year later, Alfred pays Daisy $10,400. If the inflation rate during that year is 1.5 percent, what is the real interest rate that Alfred is paying to Daisy?
2.5
Tom took out a $2,000 loan to buy a boat at an interest rate of 8 percent a year. He plans to repay the loan after 2 years. How much will he have to pay?
2333
Consider a payment of $400, which will be made three years in the future. The interest rate is 3%.
366.07
A government budget surplus _______ loanable funds. A. increases the supply of B. decreases the demand for C. increases the demand for D. decreases the supply of
A
A macroeconomic equilibrium in which real GDP exceeds potential GDP is _____ equilibrium. And one in which real GDP is less than potential GDP is _____ equilibrium. A. an above full-employment; a below full-employment B. a below full-employment; an inflationary C. an above full-employment; a recessionary D. a below full-employment; an above full-employment
A
A mortgage is a legal contract that gives ownership of a _____ to the _____ in the event that the _____ fails to meet the agreed loan payments (repayments and interest). A. home; lender; borrower B. car; borrower; lender C. car; lender; borrower D. home; borrower; lender
A
Classical macroeconomists recommend ______. A. policies that minimize the disincentive effects of taxes on employment, investment, and technological change B. policies that actively offset changes in aggregate demand that bring recession C. policies that actively offset changes in long-run aggregate supply that result in negative economic growth D. an increase in the quantity of money to offset decreases in aggregate demand and a decrease in the quantity of money to offset increases in aggregate demand
A
FDIC insurance brings _______ stability to the banking system because _______. A. more; depositors know that money they have deposited with a bank will be repaid making bank runs less likely B. less; FDIC insurance requires banks to pay lower interest rates on deposits so depositors are more likely to deposit their money in less secure institutions C. more; FDIC insurance requires banks to eliminate all risky loans D. more; depositors will take out more loans and mortgages, which increases bank profits
A
How can the change in U.S. wealth differ from U.S. saving? A. The change in wealth includes changes in the prices of assets owned and saving excludes these items. B. The change in wealth equals income minus consumption, which is not equal to saving. C. The change in wealth always equals saving. D. Saving exceeds the change in wealth when consumption expenditure exceeds income.
A
How many Federal Reserve districts are there? A. 12 B. 25 C. 50
A
If the annual interest paid on a $500 loan is $25, the nominal interest rate is _____ percent per year. If the nominal interest rate is 5 percent per year and the inflation rate is 2 percent a year, the real interest rate is _____ per year. A. 5; 3 B. 5; 7 C. 4; 4 D. 3; 5
A
If the price level and the money wage rate rise by the same percentage, the quantity of real GDP supplied ______ and there is a movement up along the ______ aggregate supply curve. A. does not change; long-run B. decreases; long-run C. does not change; short-run D. increases; short-run
A
In the long run, an increase in the quantity of money _______ the interest rate. A. does not change B. raises C. lowers D. sometimes raises and sometimes lowers
A
Inflation results from ______. A. a persistent increase in aggregate demand at a faster pace than that of the increase in long-run aggregate supply B. an increase in long-run aggregate supply that exceeds the increase in aggregate demand C. aggregate demand and long-run aggregate supply increasing at the same pace D. an increase in long-run aggregate supply that exceeds the increase in short-run aggregate supply
A
Keynesian macroeconomists recommend ______. A. policies that actively offset changes in aggregate demand that bring recession B. an increase in the quantity of money to offset decreases in aggregate demand and a decrease in the quantity of money to offset increases in aggregate demand C. policies that actively offset changes in long-run aggregate supply that result in negative economic growth D. policies that minimize the disincentive effects of taxes on employment, investment, and technological change
A
Starting from a full-employment equilibrium, an increase in aggregate demand ______, and creates ______ gap. A. increases real GDP above potential GDP; an inflationary B. decreases real GDP below potential GDP; an inflationary C. increases real GDP above potential; a recessionary D. decreases real GDP below potential GDP; a recessionary
A
The Fed is the lender of last resort, which means that if _____ is short of reserves, it can borrow from the _____. A. a bank; Fed B. a bank; government C. the Fed; government D. the Fed; Bank of International System
A
The actions the Federal Reserve takes to manage the money supply and interest rates in order to pursue economic objectives are called __________. A. Monetary policy B. Regulatory policy C. Fiscal policy
A
The aggregate demand curve slopes downward because _______. A. of the wealth effect and the substitution effect B. of the wealth effect and the price level effect C. as the price level falls, expected future income increases D. as the price level falls, expected future profits increase
A
The defining feature of the monetarist view of macroeconomics is that the economy is______. A. self-regulating and that it will normally operate at full employment, provided that monetary policy is not erratic and that the pace of money growth is kept steady B. constantly bombarded by shocks that arise from the uneven pace of technological change C. rarely at full employment D. self-regulating and always at full employment
A
The demand for loanable funds is the relationship between _____ demanded and the _____ when all other influences on borrowing plans remain the same. A. the quantity of loanable funds; real interest rate B. the quantity of capital; real interest rate C. loanable funds; real interest rate D. loanable funds; real wage rate
A
The economy is in long-run equilibrium when the short-run aggregate supply and the aggregate demand curve intersect at a point: A. on the long-run aggregate supply curve B. to the left of the long-run aggregate supply curve C. to the right of the long-run aggregate supply curve
A
The functions of depository institutions include _______. A. pooling risk B. providing credit ratings C. implementing monetary policy D.
A
The name given to the fraction of deposits that a bank is legally required to hold in its vault, or as deposits at the Fed, is __________. A. required reserves B. total reserves C. excess reserves
A
The net present value is the _______ flows of money from a financial decision minus _____ . A. value today of all future; the initial cost of the decision B. total; total cost arising from the decision C. future; the cost of the decision D. future value of all; the cost of making the decision
A
The sum of all currency in the hands of the public, checkable deposits and traveler's checks is the official definition of __________. A. M1 B. M3 C. M2
A
The supply of loanable funds is determined by the _________. The supply of loanable funds changes when _______. A. saving decisions of households, which are influenced by the real interest rate, disposable income, expected future income, wealth, and default risk; disposable income, expected future income, wealth, or default risk change B. saving decisions of households, which are influenced by the real interest rate, disposable income, expected future income, wealth, and default risk; the real interest rate changes C. decisions of financial institutions; the real interest rate changes D. demand for loanable funds; the demand for loanable funds changes
A
The supply of loanable funds is the relationship between _____ supplied and the _____ when all other influences on lending plans remain the same. A. the quantity of loanable funds; real interest rate B. the quantity of capital; real interest rate C. loanable funds; real interest rate D. loanable funds; real wage rate
A
When is the opportunity cost of holding money higher? A. When interest rates are high B. When the inflation rate is lower C. When interest rates are low
A
When the real interest rate rises, the ______ because the ______ is the opportunity cost of loanable funds. quantity of loanable funds demanded decreases; real interest rate B. demand for loanable funds decreases; inflation rate C. demand for loanable funds increases; real interest rate D. quantity of loanable funds demanded increases; inflation rate
A
When the real interest rate rises, the ______ because the ______ is the opportunity cost of loanable funds. A. quantity of loanable funds demanded decreases; real interest rate This is the correct answer. B. quantity of loanable funds demanded increases; inflation rate C. demand for loanable funds increases; real interest rate D. demand for loanable funds decreases; inflation rate
A
Which body of the Federal Reserve System sets the majority of U.S. monetary policy? a. The Federal Open Market Committee b. The Open Market Desk c. The Board of Governors
A
Which of the following statements illustrate fiscal policy? A. The US government has proposed a hike in the corporate tax rate. B. The Fed has increased its reserve requirement. C. A rise in the expected future profits has increased US investments. D. A stronger dollar has lowered US exports.
A
Which of the following statements illustrate monetary policy? A. The Fed has raised the federal funds rate by 0.3 percent. B. The US public debt-to-GDP ratio in 2011 was about 100 percent. C. The US government has increased its spending to boost demand. D. Some US firms have scrapped outsourcing to China due to rising labor costs.
A
Which of these factors will cause the aggregate demand curve to shift? A. A change in the expectations of households and firms B. An increase in productivity C. A change in the price level
A
Which of these policies affects the economy through intended changes in the quantity of money and interest rates? A. Monetary policy B. Tax policy C. Fiscal policy
A
Which of these shifts the aggregate demand curve to the right? A. Lower interest rates B. A fall in the price level C. Falling exports
A
A depository institution is a _______. A. bank's bank and a public authority that conducts the nation's monetary policy B. financial firm that takes deposits from households and firms C. financial firm that has three types of liabilities—cash liabilities, securities, and loans D. commercial institution that practices 100 percent reserve banking
B
A government budget deficit _______ loanable funds. A. decreases the demand for B. increases the demand for C. decreases the supply of D. increases the supply of
B
A government budget surplus _______ the real interest rate, decreases ______. A. raises; private saving, and increases investment B. lowers; private saving, and increases investment C. raises; investment, and increases private saving D. lowers; investment, and increases private saving
B
A higher exchange rate will result in: A. a decrease in net exports and an increase in aggregate demand B. a decrease in net exports and a decrease in aggregate demand C. an increase in net exports and an increase in aggregate demand
B
A rise in the money wage rate with no change in potential GDP creates ______. A. a movement along the SAS curve B. a leftward shift of the SAS curve and no change in the LAS curve C. a leftward shift of the LAS curve and a leftward shift of the SAS curve D. a leftward shift of the LAS curve and no change in the SAS curve
B
According to Keynesian theory, fiscal policymakers can combat the impact of recessions by: A. decreasing government spending. B. increasing government spending. C. increasing the money supply.
B
According to the graph, an increase in the quantity of money is best described by: A. the shift in the AS curve B. the shift in the AD curve C. a move along the AD curve
B
As a result, the equilibrium real interest rate ______ and the equilibrium quantity of loanable funds ______. A. rises, falls, or remains the same; increases B. rises; increases, decreases, or remains the same C. falls; decreases D. rises, falls, or remains the same; increases, decreases, or remains the same
B
Assuming there are no leakages out of the banking system, a money multiplier equal to 5 means that: A. each additional dollar of deposits creates $5 of reserves. B. each additional dollar of reserves creates $5 of deposits. C. an additional $5 of reserves creates one dollar of deposits.
B
Choose the correct statement. A. A check is money because while it is in circulation the quantity of money increases by the amount of the check. B. Deposits are money, checks are not money, and credit cards are not money. C. Currency is money and credit cards are money because they are means of payment, but deposits are not money. D. A credit card is money because it allows you to take a loan at the instant you buy something.
B
Choose the correct statement. A. The nominal interest rate is the opportunity cost of loanable funds. B. The real interest rate is the nominal interest rate adjusted to remove the effects of inflation on the buying power of money. C. The nominal interest rate is approximately equal to the real interest rate minus the inflation rate. D. The real interest rate is the number of dollars that a borrower pays and a lender receives in interest in a year expressed as a percentage of the number of dollars borrowed and lent.
B
Credit cards are: A. part of M2. B. not part of the money supply. C. part of M1 but not part of M2.
B
If firms reduce investment spending and the economy enters a recession, which of these contributes to the adjustment that causes the economy to return to its long-run equilibrium? A. The decision by firms to charge higher prices B. The eventual agreement by workers to accept lower wages C. The decision by workers to strike for higher wages
B
If real GDP increases: a. the money demand curve shifts to the left. b. the money demand curve shifts to the right. c. there is a movement down along a stationary money demand curve.
B
In the long run, the money wage rate ______, short-run aggregate supply ______, and the economy returns to a full-employment equilibrium. A. rises; increases B. rises; decreases C. falls; increases D. falls; decreases
B
Net worth is the total market value of what a financial institution has _____ minus the market value of what it has _____. A. earned; saved B. lent; borrowed C. spent; earned D. lent; spent
B
Saving is the amount of income that is _____ in net taxes or spent on _____ goods and services. A. paid; capital B. not paid; consumption C. paid; consumption D. not paid; capital
B
Starting from a full-employment equilibrium, a decrease in short-run aggregate supply ______ the price level and ______ potential GDP. A. decreases; increases real GDP above B. increases; decreases real GDP below C. decreases; decreases real GDP below D. increases; increases real GDP above
B
Starting from a short-run equilibrium, when the Fed decreases the quantity of money, _______. A. banks conduct an open market operation and sell Treasury bills B. people enter the loanable funds market and sell bonds C. people enter the loanable funds market and buy bonds D. the quantity of unplanned reserves in the economy increases and banks make more loans
B
The aggregate demand and aggregate supply model explains: A. the effect of long-run economic growth on poverty B. short-run fluctuations in real GDP and the price level C. the effect of changes in interest rates on investment spending
B
The aggregate demand curve shows the relationship between: A. The price level and interest rates B. The price level and the quantity of real GDP demanded C. The interest rate and the quantity of real GDP supplied
B
The loanable funds market is the aggregate of all the individual _____ markets. A. commodity B. financial C. auction D. labor
B
The price of a bond ______ and the interest rate in the short run ______. A. rises;falls B. falls;rises C. falls;falls D. rises;rises
B
The risk that a borrower, also known as a creditor, might not _____ is called credit risk or default risk. A. pay the specified interest rate B. repay a loan C. buy insurance D. send information to lender
B
The two main official measures of money in the United States today are ______. The two main official measures of money in the United States ______ really money. A. M2 and M3; are not B. M1 and M2; are C. M1 and M2; are not D. currency and M2; are
B
We call the leakage of bank reserves into currency the currency drain, and we call the ratio of _____ to _____ the currency drain ratio. A. currency; reserves B. currency; deposits C. deposits; currency D. reserves; currency
B
When interest rates on Treasury bills and other financial assets are low, the opportunity cost of holding money is __________ , so the quantity of money demanded will be __________. A. high, low B. low, high C. high, high
B
When potential GDP increases, ______. A. we don't know what the effect is on long-run aggregate supply or short-run aggregate supply B. long-run aggregate supply and short-run aggregate supply increase. The LAS and the SAS curve shift rightward C. long-run aggregate supply increases but short-run aggregate supply does not change. The LAS curve shifts rightward and a movement occurs along the SAS curve D. long-run aggregate supply and short-run aggregate supply increase. A movement upward occurs along the LAS curve and along the SAS curve
B
When the price level, the money wage rate, and other factor prices rise by the same percentage, there is a movement along ______. Potential GDP ______. A. the LAS curve; decreases B. the LAS curve; does not change C. the LAS curve and the SAS curve; decreases D. the LAS curve and the SAS curve; does not change and the quantity of real GDP supplied increases
B
When we say that money serves as a unit of account, we mean that: A. Exchange is made through the use of money. B. Prices are quoted in terms of money. C. Money eliminated the double coincidence of wants that exists under barter.
B
Which of these factors will cause the long-run aggregate supply curve to shift to the right? A. Technological stagnation B. The accumulation of more machinery and equipment C. A decline in the number of workers
B
Which of these will shift the money demand curve to the right? A. An increase in interest rates B. An increase in real GDP C. A decrease in interest rates
B
A financial institution is a firm that operates on both sides of the markets for _____: It _____ in one market and _____ in another. A. investments; buys; sells B. profits; earns; spends C. financial capital; borrows; lends D. loans; lends; saves
C
A government budget deficit _______ the real interest rate, increases ______. A. lowers; investment, and decreases private saving B. lowers; private saving, and decreases investment C. raises; private saving, and decreases investment D. raises; investment, and decreases private saving
C
A stock is a certificate of _____ and claim to the _____ that a firm makes. A. secured loan; revenues B. deposit; loans C. ownership; profits D. saving; profits
C
An open market purchase ______ the monetary base. An open market sale ______ the monetary base. A. increases; has no effect on B. increases the quantity of currency, which increases; decreases the quantity of currency, which decreases C. increases; decreases D. decreases; increases
C
Choose the correct statement. A. Money market mutual funds represent 13 percent of M1. B. In 2017 about 700 commercial banks operated in the United States. C. Loans are funds committed for an agreed-upon period of time. D. The deposits of commercial banks represent 62 percent of M1 and 49 percent of M2.
C
Depository institutions provide four benefits, which are ______. A. pooling risk, keeping inflation low and steady, lowering the cost of borrowing, and lowering the cost of monitoring borrowers B. minimizing interest rates on purchases of large ticket items, centralizing all household monetary needs in one location, introducing new technology into banking, and paying interest on investment funds C. creating liquidity, lowering the cost of borrowing, lowering the cost of monitoring borrowers, and pooling risk D. creating liquidity, lowering the cost of borrowing, paying interest on investment funds, and introducing new technology into banking
C
Examples of fiscal policy that increase aggregate demand include ______. A. a decrease in taxes and a decrease in interest rates B. an increase in transfer payments and an increase in interest rates C. an increase in government expenditure, a decrease in taxes, and an increase in transfer payments D. a decrease in taxes and an increase in the quantity of money
C
FDIC insurance helps to minimize the cost of bank failure by _______. A. insuring bank profits up to $250,000 per deposit B. limiting the cost of loan default to amounts over $250,000 C. limiting the loss of each deposit to amounts over $250,000 D. covering the total amount of all bank deposits
C
How can government policies shift the aggregate demand curve to the right? A. By decreasing government purchases B. By increasing personal income taxes C. By increasing government
C
If the monetary base increases by $1 million and the quantity of money increases by $2.5 million, then the money multiplier is _____. A.1 B.2.8 C.2.5 D.2
C
State the financial decision rule: If the net present value is positive _______ and if the net present value is negative _______. A. invest more money; invest less money B. hire more workers; hire fewer workers C. take the action; do not take the action D. do not take the action until the interest rate rises; do not take the action until the interest rate falls
C
The Fed conducts monetary policy primarily through __________. A. currency drain ratios B. desired reserve ratios C. open market operations
C
The Federal Reserve System is __________. A. the institution that also regulates stock markets B. also known as the U.S. Treasury C. the central bank of the United States
C
The classical view assumes: A. technology changes at a steady and predictable pace B. money wage rates do not adjust quickly. C. money wage rates adjust quickly.
C
The long-run aggregate supply curve: A. is negatively sloped B. is positively sloped C. shifts to the right as technological change occurs
C
The wealth effect refers to the fact that: A. when the price level falls, the nominal value of assets rises, while the real value of assets remains the same B. when income rises, consumption rises C. when the price level falls, the real value of household wealth rises, and so will consumption
C
The _______, the greater is the amount that a household decides to save. A. smaller the default risk and the greater a household's wealth B. higher the expected profit and the greater a household's disposable income C. greater a household's disposable income and the smaller a household's expected future income D. smaller a household's expected future income and the greater a household's wealth
C
To increase the money supply, the Fed __________. A. sells securities to the public B. prints securities and puts them in circulation C. buys securities from the public
C
When we say that one of the functions of the Fed is to be a lender of last resort, we mean that the Fed __________. A. sets reserve requirements B. regulates the nation's depository institutions C. lends to banks that are short of reserves and cannot find any other source of funds
C
__________ advocates active government intervention via fiscal policy when the economy is in recession. A. New classical theory b. Monetary theory c. Keynesian theory
C
Which of these is a financial institution?
Commercial bank
A central bank _______. A commercial bank _______. A. conducts monetary policy: adjusts the quantity of money in circulation and influences interest rates B. takes deposits from governments and firms with assets over $2 billion; is a firm that is licensed to receive deposits and make loans C. is a bank's bank; conducts monetary policy D. is a bank's bank; is a firm that takes deposits from households and firms
D
Aggregate demand _______ when an increase in interest rates occurs. Aggregate demand _______ when an increase in expected future income occurs. A. increases; decreases B. increases; increases C. decreases; decreases D. decreases; increases
D
As a result, the equilibrium real interest rate ______ and the equilibrium quantity of loanable funds ______. A. rises; increases, decreases, or remains the same B. falls; decreases C. falls; increases D. rises, falls, or remains the same; increases
D
Examples of monetary policy that decrease aggregate demand include ______. A. an increase in transfer payments and an increase in interest rates B. a decrease in taxes and a decrease in interest rates C. an increase in taxes and a decrease in the quantity of money D. a decrease in the quantity of money and an increase in interest rates
D
If the price level rises and the money wage rate remains constant, the quantity of real GDP supplied ______ and there is a movement up along the ______ aggregate supply curve. A. does not change; short-run B. increases; long-run C. does not change; long-run D. increases; short-run
D
In times of recession, the Fed _______ the interest rate and __________ the quantity of money. A. raises; increases B. raises; decreases C. lowers; decreases D. lowers; increases
D
Monetarist macroeconomists recommend ______. A. policies that increase short-run aggregate supply to offset decreases in aggregate demand B. policies that actively offset changes in aggregate demand that bring recession C. increases in the quantity of money to increase long-run aggregate supply D. policies that keep taxes low to avoid disincentive effects that decrease potential GDP
D
Net present value is the _______. A. present value of the marginal benefit from a financial decision minus its marginal cost B. future value of a decision divided by (1 + r) C. present value of all the future flows of money that arise from a financial decision divided by the number of years until a profit is expected from the decision D. present value of all the future flows of money that arise from a financial decision minus the initial cost of the decision
D
The defining feature of the Keynesian view of macroeconomics is that the economy is ______. A. self-regulating and always at full employment B. that the quantity of money is the most significant influence on aggregate demand C. constantly bombarded by shocks that arise from the uneven pace of technological change D. rarely at full employment
D
The defining feature of the classical view of macroeconomics is that the economy is ______. A. constantly bombarded by shocks that arise from the uneven pace of technological change B. driven by expectations called "animal spirits" C. rarely at full employment D. self-regulating and always at full employment
D
The crowding-out effect is the tendency for a government budget deficit to raise the _____ and _____ investment. A. price level; increase B. real interest rate; decrease C. quantity of output; increase D. real wage rate; decrease
D
The "average overall increase across the board" wage increase _______. A. increases long-run aggregate supply because potential GDP increases B. decreases long-run aggregate supply because potential GDP decreases C. increases short-run aggregate supply because workers are willing to work more hours D. decreases short-run aggregate supply because it increases firms' costs
D
The long-run historical evidence and international evidence show us that the relationship between money growth and the inflation rate ______. A. is non-existent, and the quantity theory of money which was accurate in the past is no longer applicable B. is an inverse relationship that does not correspond to the quantity theory C. supports the quantity theory, and the money growth rate equals the inflation rate in the long run D. supports the quantity theory, but the correlation is not perfect
D
Wealth is the value of all the things that people _____. A. demand B. save C. spend D. own
D
What limits the quantity of money that the banking system can create? The quantity of money that the banking system can create is limited by _______. A. bank managers' decisions B. the credit ratings of the consumers who are applying for loans C. the number of consumers who apply for loans D. the monetary base, desired reserves, and desired currency holdings
D
When a shortage or a surplus arises in the loanable funds market _______. A. the supply of loanable funds changes to return the economy to its original real interest rate B. the nominal interest rate is pulled to the new equilibrium level C. the demand for loanable funds changes to return the economy to its original real interest rate D. the real interest rate is pulled to the new equilibrium level
D
When the price level rises but the money wage rate and other factor prices remain the same, there is a movement along ______. The quantity of real GDP supplied ______. A. the LAS curve and the SAS curve; decreases B. the SAS curve; decreases C. the LAS curve; decreases D. the SAS curve; increases
D
According to the graph, an increase in government spending, all else equal, will shift the AD curve from the initial AD curve to the curve labeled:
Increase AD
The quantity theory of money is that in the _______, an increase in the quantity of money brings an equal percentage increase in the _______. A. short run; increase in the price level B. long run; nominal interest rate C. long run; increase in the price level D. long run; decrease in the price level
c
Draw an aggregate demand curve. Label it AD. Draw an arrow on the AD curve that shows the international substitution effect when the price level falls. Label it 1. Draw an arrow on the AD curve that shows the international substitution effect when the price level rises. Label it 2.
https://quizlet.com/243886927/econ-chapter-10-pearson-questions-flash-cards/
Draw a curve to show the result of actions taken by the Fed to move the economy back toward a full employment equilibrium. Draw a point to show the new short-run macroeconomic equilibrium.
https://www.chegg.com/homework-help/questions-and-answers/draw-curve-show-result-actions-taken-fed-move-economy-back-toward-full-employment-equilibr-q47828023
Suppose there is an increase in interest rates. Draw a new curve to show the effect of this change on aggregate demand. Label the new curve C1. Now suppose that there is an increase in expected future income. Draw a new curve to show the effect of this change on the original AD curve. Label the new curve C2.
https://www.chegg.com/homework-help/questions-and-answers/graph-shows-aggregate-demand-curve-suppose-increase-interest-rates-draw-new-curve-show-eff-q46847673
The graph shows a business cycle. Draw a vertical arrow that shows: 1) a recessionary gap. Label it 1. 2) an inflationary gap. Label it 2. Draw a point that shows the economy at full employment.
https://www.chegg.com/homework-help/questions-and-answers/graph-shows-business-cycle-draw-vertical-arrow-shows-recessionary-gap-label-1-inflationary-q14240167
The graph shows an aggregate demand curve. Draw a curve that shows the effect on aggregate demand of an increase in expected future profits. Label it.
https://www.chegg.com/homework-help/questions-and-answers/graph-shows-economy-s-aggregate-demand-curve-draw-curve-show-effect-aggregate-demand-today-q10787457
The graph gives a long-run aggregate supply curve and a short-run aggregate supply curve. Potential GDP increases and the full-employment price level remains constant. Draw the new long-run aggregate supply curve and the new short-run aggregate supply curve. Label the curves. Draw a point that shows the new value of potential GDP at the full-employment price level.
https://www.chegg.com/homework-help/questions-and-answers/potential-gdp-increases-happens-aggregate-supply-potential-gdp-increases-o-don-t-know-effe-q43405335
An international substitution effect arises because when the U.S. price level rises, _______.
people spend less on the more expensive U.S.-made items and they spend more on the less expensive foreign-made items
