If the government imposes price controls and prevents prices from adjusting naturally to supply and demand,
a. it equates the amount buyers are willing and able to buy with the amount sellers are willing and able to supply.
b. it adversely affects the allocation of resources

The money-creation multiplier is the

A) same as the income-determination multiplier. B) amount by which the money supply would rise with a $1 increase in the supply of high-powered money. C) amount by which the money supply of high-powered money will increase equilibrium GDP. D) amount by which a $1 increase in reserves would raise an individual bank's deposit liabilities.

Which of the following is a basic macro policy strategy?

A. A laissez faire approach. B. Shifting the aggregate demand curve. C. Shifting the aggregate supply curve. D. All of the choices are correct.