This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: Beginning from full-employment macro equilibrium, increase in government spending will cause real ... (Read 40 times)

SAVANNAHHOOPER23

  • Hero Member
  • *****
  • Posts: 542
on: Jun 30, 2018
Beginning from full-employment macro equilibrium, increase in government spending will cause real GDP to:
 a. increase in the short run.
  b. decline in the long run.
 c. decline in the short run.
  d. increase in the long run.

Question 2

Assume all banks in the system started have a 10 percent required reserve ratio and the Fed made a 20,000 open market purchase. The result would be a(n):
 a. 200,000 expansion of the money supply.
  b. 20,000 expansion of the money supply.
  c. 20,000 contraction of the money supply.
  d. infinite contraction of the money supply.


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

LP

  • Sr. Member
  • ****
  • Posts: 302
Reply #1 on: Jun 30, 2018
Answer to Question 1

a

Answer to Question 2

a


SAVANNAHHOOPER23

  • Hero Member
  • *****
  • Posts: 542
Reply #2 on: Jun 30, 2018
Thank you :)


LP

  • Sr. Member
  • ****
  • Posts: 302
Reply #3 on: Jun 30, 2018
Happy to help you


« previous next »
 

Did you know?

More than one-third of adult Americans are obese. Diseases that kill the largest number of people annually, such as heart disease, cancer, diabetes, stroke, and hypertension, can be attributed to diet.

Did you know?

It is widely believed that giving a daily oral dose of aspirin to heart attack patients improves their chances of survival because the aspirin blocks the formation of new blood clots.

Did you know?

Opium has influenced much of the world's most popular literature. The following authors were all opium users, of varying degrees: Lewis Carroll, Charles, Dickens, Arthur Conan Doyle, and Oscar Wilde.

Did you know?

Disorders that may affect pharmacodynamics include genetic mutations, malnutrition, thyrotoxicosis, myasthenia gravis, Parkinson's disease, and certain forms of insulin-resistant diabetes mellitus.

Did you know?

Computer programs are available that crosscheck a new drug's possible trade name with all other trade names currently available. These programs detect dangerous similarities between names and alert the manufacturer of the drug.

This chart illustrates the bottom up assumption about government. In this, attitudes, culture, and This chart illustrates the bottom up assumption about government. In this, attitudes, culture, and
This modified model of Easton’s systems theory puts government decision makers as the source of pol This modified model of Easton’s systems theory puts government decision makers as the source of pol
Median Annual Earnings of Full-Time Workers, by Gender, 1960–2010 Median Annual Earnings of Full-Time Workers, by Gender, 1960–2010
Regular staff meetings increase the efficiency of the medical office staff. Regular staff meetings increase the efficiency of the medical office staff.
Full-term Fetus Full-term Fetus
Prove that each of the following real functions f has a discontinuity. For each function, ... Prove that each of the following real functions f has a discontinuity. For each function, ...
Video: Energy Flow - Trophic Levels and Food

For a complete list of videos, visit our video library