Nominal wages are assumed fixed in the short run because:
a. workers have wages stated in their contracts.
b. of minimum wage laws.
c. workers are unaware of short-run changes in their real wages.
d. all of the above are true.
e. none of the above are true.
QUESTION 2The amount of assets that a bank must hold at all times is determined by the:
a. banks' actual reserves.
b. required reserve ratio.
c. actual reserve requirement.
d. fractional reserve requirement.
e. excess reserve requirement.
QUESTION 3Economic development encompasses which of the following measures?
a. Economic growth. b. The political environment.
c. Education. d. All of these.
QUESTION 4In the short run, an increase in the price level causes which of the following:
a. A rightward shift in the aggregate demand curve.
b. A leftward shift in the short-run aggregate supply curve.
c. A rightward shift in the short-run aggregate supply curve.
d. A movement upward along the short-run aggregate supply curve.
QUESTION 5The major assets and liabilities of a bank are:
a. checkable deposits and total reserves, respectively.
b. checkable deposits and gold, respectively.
c. total reserves and checkable deposits, respectively.
d. total reserves and excess reserves, respectively.
e. checkable deposits and excess reserves, respectively.
QUESTION 6There is a direct link between a nation's per capita real GDP and its:
a. c and e.
b. c, d, and e.
c. human capital investment.
d. population.
e. life expectancy.
QUESTION 7The short-run aggregate supply curve (SRAS) is the amount of real GDP:
a. produced at various price levels.
b. produced at various savings rate levels.
c. purchased at various price levels.
d. purchased at various saving rate levels.
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