If a bank has actual reserves of $40,000 and a 20 percent reserve requirement, then the maximum amount of checkable deposits the bank can have if excess reserves are zero is:

If an economy experiences an increase in its labor force, everything else constant, then its production possibilities frontier (PPF) will

A) expand outward but keep its original shape. B) expand outward largely in the direction of the labor intensive good. C) expand outward largely in the direction of the capital intensive good. D) not expand until capital grows.

A classical objection to Keynesian sticky price models is that

A) it is easier for firms to change prices rather than change output. B) it is cheaper for firms to change output rather than change prices. C) sticky price models are internally inconsistent. D) real shocks are more important than nominal shocks.