Suppose a bank has checkable deposits of $100,000 and the required reserve ratio is 20 percent. If the bank currently has $100,000 in reserves, it could expand the money supply by as much as:

During the ________ output ________ its natural level

A) late 1990s, exceeded B) 1960s, deviated relatively little from C) early 1980s, tended to exceed D) all of the above

The Keynesian region of the aggregate supply curve represents an economy with:

a. high unemployment and low inflation. b. low unemployment and low inflation. c. low unemployment and high inflation. d. high unemployment and high inflation. e. excess capacity but no unemployment or inflation.