One reason for the short-run aggregate supply curve (SRAS) is:
a. a fixed CPI market basket.
b. perfect knowledge of workers.
c. fixed-wage contracts.
d. the upward-sloping production function.
Question 2
Assume that Paris First National Bank is a thriving bank with deposits of 20 million. If the required reserve ratio is 20 percent and the bank is fully loaned out, the bank will keep what amount of required reserves?
a. 2 million.
b. 4 million.
c. 10 million.
d. 16 million.
e. 20 million.
