If consumption is $1800, GDP is $4300, government purchases are $1000, imports are $700, and investment is $1200, then exports are $300.
If the current year CPI is 90, then the price level has decreased 10 percent since the base year.
Within the U.S. population, women have higher rates of unemployment than men.
When the Soviet Union began breaking up in the late 1980s, cigarettes began replacing the ruble as the medium of exchange even though the ruble was legal tender. The cigarettes provide an example of fiat money.
the market value of all final goods and services produced within a country in a given period of time.
The value of the goods and services produced by the restaurant is included in Romanian GDP, but not in U.S. GDP.
100 in 2002.
106 in 2004.
114.48 in 2006.
monitor changes in the cost of living over time.
One problem with the consumer price index stems from the fact that, over time, consumers tend to buy larger quantities of goods that have become relatively less expensive and smaller quantities of goods that have become relatively more expensive. This problem is called
the amount of unemployment that the economy normally experiences.
more often, giving rise to shoeleather costs.
interest rates are usually falling.
is required when there is no item in an economy that is widely accepted in exchange for goods and services.
is required in an economy that relies on barter.
is a hindrance to the allocation of resources when it is required for trade.
five of the 12 presidents of the regional Federal Reserve banks.
the president of the Federal Reserve Bank of New York.
the seven members of the Board of Governors.
Other things the same if reserve requirements are decreased, the reserve ratio
decreases, the money multiplier increases, and the money supply increases.
Suppose a bank has $100,000 in checking account deposits with no excess reserves and the required reserve ratio is 10 percent. If the Federal Reserve raises the required reserve ratio to 12 percent, then the bank will now have excess reserves of
According to the quantity theory of money, deflation will occur if the
money supply grows at a slower rate than real GDP.
Which of the following are goals of monetary policy?
price stability, economic growth, and high employment
The money demand curve has a negative slope because
lower interest rates cause households and firms to switch from financial assets to money.
The federal funds rate is
the interest rate banks charge each other for overnight loans.
Contractionary monetary policy causes
aggregate demand to fall and the price level to fall.
Inflation targeting makes monetary policy ineffective because the targets are publicly announced.