Author: Anonymous

The ratio of a bank’s total reserves to its total deposits is how much of a bank’s deposits it has to keep on hand. A bank is not allowed to lend this out and is forced to keep it in reserve. This ratio is known as the what?

The ratio of a bank’s total reserves to its total deposits is how much of a bank’s deposits it has to keep on hand. A bank is not allowed to lend this out and is forced to keep it in reserve. This ratio is known as the what?

Which of the following will happen if an economy’s current output coincides with full employment, but businesses begin to notice that consumers, government, businesses, and the foreign sector do not buy all that is being produced?

The production possibilities curve model shows us what?

When we described the production possibilities curve, how did we describe production that is not efficient using this model?

When we described the production possibilities curve, how did we describe production that is not efficient using this model?

Any influence on inflation and employment must be transmitted through either aggregate supply or aggregate demand. Addressing these outcomes is why we model the macro economy in this way.

Any influence on inflation and employment must be transmitted through either aggregate supply or aggregate demand. Addressing these outcomes is why we model the macro economy in this way.

Say the Environmental Protection Agency imposes regulations on polluting and now businesses must pay to dispose of waste. Which of the following happens?

What does a recessionary gap indicate about the economy?