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

Total output in an economy increases when each person specializes because

a. there is less competition for the same resources. b. each person spends more time producing that product in which he or she has a comparative advantage. c. a wider variety of products will be produced within each country due to specialization. d. government necessarily plays a larger role in the economy due to specialization.

The natural rate of unemployment:

A. Means that the economy will always operate at that rate B.  Means that the economy will always realize its potential output C.  Is equal to the total of frictional and structural unemployment D.  Is a fixed unemployment rate that does not change over time