Education and training programs are most effective when the need for them is greatest

Assume the economy is initially in equilibrium on AD2 and AS2. Which curve would have shifted, and in what direction would it have shifted, if a new equilibrium were to occur at an output level of $300 billion and a price level of P3 in Figure 8.3?

A. Aggregate supply would have shifted to the left. B. Aggregate supply would have shifted to the right. C. Aggregate demand would have shifted to the right. D. Aggregate demand would have shifted to the left.

Given a required reserve ratio of 20 percent for all banks, total bank reserves of $300 billion could support maximum deposits of:

A. $2,000 billion. B. $1,200 billion. C. $1,500 billion. D. $60 billion.