Morgan decides to go on a vacation for which he withdraws $2,500 from his savings account (NOT his checking account. Recall, saving accounts are part of M2 and M1 is a part of M2). As a result of this transfer by itself

The long-run aggregate supply curve shows that, by itself, a permanent increase in aggregate demand would lead to a long-run 

Table 2   Refer to table 2. Instead, suppose the Bank of Duluth keeps no excess reserves in the T-account above. If a customer deposits an additional $5,000 into his account at the Bank of Duluth, banks keep no excess reserves and agents hold no currency in their hands, then the money supply will increase by

If the multiplier is 6 and if there is no crowding-out effect, then a $60 billion increase in government expenditures causes aggregate demand to

Scenario 1 In 2007-09, the U.S. economy went through its worst economic downturn in 30 years. As a consequence of the sharp increase in the price of housing in the U.S. in the mid-2000s, a rapid increase in the demand for oil drove up oil prices. Additionally, the collapse of the housing market, which led to Lehman Brothers’ bankruptcy, generated a financial crisis that reduced private spending.   Refer to scenario 1. Within the framework of the AD-SRAS-LRAS model discussed in class, what would happen with prices and output in the U.S. in the short-run if the economy initially starts in a situation of long-run equilibrium and is then hit by: (i) a shock that increases the price of oil; and (ii) a financial crisis that reduces private spending (assume that the shock in (i) is larger in magnitude than the shock in (ii). Call this new short-run equilibrium point A)?

Figure 2. On the graph, MS represents the money supply and MD represents money demand. The usual quantities are measured along the axes.   Refer to figure 2. If the relevant money-supply curve is the one labeled MS1, then the equilibrium price level is

Figure 2. On the graph, MS represents the money supply and MD represents money demand. The usual quantities are measured along the axes.   Refer to figure 2. What is true about the increase in quantities measured along the horizontal axis from 0.33 to 0.5?

What is true about trade data over the past four decades in the US?

If the exchange rate is 0.60 British pounds per $1, a bottle of pop that costs 3 pounds in Great Britain costs, in the U.S.,

Other things the same, an increase in velocity means that