Author Question: In long-run full-employment equilibrium, the CPI equals AD equals SRAS equals LRAS. a. True b. ... (Read 136 times)

nelaaney · **on:** Jun 30, 2018

In long-run full-employment equilibrium, the CPI equals AD equals SRAS equals LRAS.
a. True
b. False
Indicate whether the statement is true or false

Question 2

In a simplified banking system with a 20 percent required reserve ratio, a 1,000 open-market sale by the Fed would cause the money supply to:
a. increase by 200 b. decrease by 200.
c. decrease by 5,000 d. increase by 5,000.