Which of the following would cause a decrease (leftward shift) in the short-run aggregate supply ...

Which of the following would cause a decrease (leftward shift) in the short-run aggregate supply curve (SRAS)?
 a. An increase in oil prices.
  b. An advance in technology.
 c. An increase in the CPI.
 d. An increase in the long-run aggregate supply curve (LRAS).

QUESTION 2

Imagine that Odyssey National is a brand new bank, and that its required reserve ratio is 10 percent. If it accepts a 1,000 deposit, then its loan balance can increase by a maximum of:
 a. 0.
  b. 90.
  c. 100.
  d. 900.
  e. 910.

QUESTION 3

Which of the following best defines the vicious circle of poverty?
 a. Countries are poor because they cannot afford to save and invest.
  b. Countries are poor because of high population growth.
  c. Countries are poor because of lack of education and training for workers.
  d. Countries are poor because of poor international credit.

QUESTION 4

Which of the following causes a leftward shift in the short-run aggregate supply curve?
 a. An increase of goods prices while nominal incomes are unchanged.
 b. An increase in nominal incomes (wages and salaries).
 c. An increase of full-employment real GDP.
 d. An increase of personal consumption expenditures while the price level is unchanged.
 e. An increase of personal consumption expenditures while full-employment real GDP is unchanged.

QUESTION 5

The vicious circle of poverty refers to the fact that in LDCs,
 a. low living standards lead to declines in population growth.
  b. too much spending leads to periods of recession.
  c. people are poor because too much is spent on capital goods.
  d. there are not enough people in the under-15 age groups.
  e. poverty leads to low investment in capital goods.

QUESTION 6

If your bank faces a 20 percent required reserve ratio and receives a cash deposit of 4,000 into a checkable deposit account, the maximum total amount of money possible after the banking system makes all loans is:
 a. 800.
  b. 3,200.
  c. 4,000.
  d. 16,000.
  e. 20,000.

QUESTION 7

A decrease in nominal incomes cause a:
 a. rightward shift in the short-run aggregate supply curve.
  b. leftward shift in the short-run aggregate supply curve.
  c. rightward shift in the long-run aggregate supply curve.
  d. leftward shift in the long-run aggregate supply curve.

QUESTION 8

Assume we have a simplified banking system in balance-sheet equilibrium. Also assume that all banks are subject to a uniform 10 percent reserve requirement and checkable deposits are the only form of money. A commercial bank receiving a new checkable deposit of 100 would be able to extend new loans in the amount of:
 a. 10.
  b. 90.
  c. 100.
  d. 1,000.