An increase in aggregate demand results in a(n) ________ in the ________
A) recession; long run B) expansion; long run
C) recession; short run D) expansion; short run
D
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Suppose you found $5,000 hidden in your closet and deposited it in a demand deposit account at your bank. If the reserve requirement was 10 percent, the deposit would directly create ____ in excess reserves and ultimately lead to a ____ total increase in the money supply, if all banks in the system lend out 100 percent of their excess reserves
a. $500; $5,000 b. $4,500; $5,000 c. $4,500; $45,000 d. $4,500; $50,000
Which of the following would make cheating on a collusive agreement more likely?
a. greater ease of observing other firms' prices b. a reduction in the number of sellers in the market c. close monitoring by the Department of Justice d. more frequent shifts in market demand e. an increase in the number of customers in the market