Author Question: The short-run aggregate supply curve (SRAS) is based on the theory that wages are flexible. a. True ... (Read 58 times)

EY67 · **on:** Jun 30, 2018

The short-run aggregate supply curve (SRAS) is based on the theory that wages are flexible.
a. True
b. False
Indicate whether the statement is true or false

Question 2

Assume a simplified banking system subject to a 20 percent required reserve ratio. If there is an initial increase in excess reserves of 100,000 . the money supply:
a. increases 100,000 b. increases 500,000.
c. increases 600,000 d. decreases 500,000.