We observe the duration of unemployment falling and wage rates rising. It is likely that
A) the government has initiated expansionary fiscal policy but the policies haven't taken effect yet.
B) summer has arrived.
C) aggregate supply has increased.
D) aggregate demand has increased.
D
You might also like to view...
The process of money creation can be reversed:
a. when a person pays a loan back to a bank b. when the government passes a law against it. c. when customers begin to deposit money into banks. d. when loans are extended to customers.
A bank's assets consist of $1,000,000 in total reserves, $2,100,000 in loans, and a building worth $1,200,000 . Its liabilities and capital consist of $3,000,000 in demand deposits and $1,300,000 in capital. If the required reserve ratio is 10 percent, what is the level of the bank's excess reserves? How much money could the excess reserves be used to create in the banking system as a result?
a. $700,000; $700,000 b. $700,000; $7,000,000 c. $300,000; $300,000 d. $300,000; $3,000,000