In long-run full-employment equilibrium, the CPI equals AD equals ...

[nelaaney]

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.

[alvinum]

Answer to Question 1

True

Answer to Question 2

c

[nelaaney]

Thanks for the timely response, appreciate it

[emsimon14]

Excellent