Refer to Figure 10.2. Assume the economy is initially at equilibrium at potential GDP of $500 billion. If the MPC = 0.80 , and real GDP falls to Y2 = $400 billion, the vertical distance between AE1 and AE2 must be

Total reserves of private banks are

A) federal reserve notes. B) all customer deposits. C) deposits held at the Fed and vault cash. D) the minimum amount banks need to hold against time deposits.

Using the data in the table above, the equilibrium quantity and equilibrium price for a cellular telephone are

A) 50,000 and $100. B) 80,000 and $80. C) 60,000 and $50. D) 100,000 and $20. E) 40,000 and $20.