39.An increase in the money supply

Group of answer choices

a. Shifts the aggregate supply curve to the right.

b. Shifts the aggregate supply curve to the left.

c. Shifts the aggregate demand curve to the left.

d. Shifts the aggregate demand curve to the right.

e. Affects neither the aggregate demand nor the aggregate supply curve.

33.Which of the following countries has the least burdensome budget deficit?

GDP Government Budget Deficit

____________________________________________________________________

Country A $ 100 billion $ 2 billion

Country B $ 300 billion $ 35 billion

Country C $ 1,000 billion $ 50 billion

Country D $ 2,500 billion $ 100 billion

Country E $ 4,500 billion $ 250 billion

___________________________________________________________________

Group of answer choices

a. Country A.

b. Country B.

c. Country C.

d. Country D.

e. Country E.

32.A major issue leading to demand-side inflation is

Group of answer choices

a. Rapid growth of an economy's potential output.

b. Results from significant price increases of important resources.

c. The presence of considerable slack in the economy.

d. The existence of unions, and firms with considerable market power

e. Increases in spending when resources are fully employed.

31.A leftward shift in the aggregate supply curve produces:

Group of answer choices

a. A higher standard of living.

b. Supply-side inflation.

c. Demand-side inflation.

d. Increases in real output.

e. A horizontal Phillips curve.

28.To assure the acceptability of money, a government must

Group of answer choices

a. Create enough of it so people can purchase all the goods they want and need.

b. Prevent the public from holding it for extended periods.

c. Ensure it supply keeps pace with inflation.

d. Control its quantity relative to output.

e. Back it with gold or silver.

25.Commercial bank practice of lending money and therefore holding less cash than

what is owed its depositors is called:

Group of answer choices

a. Federal Reserve banking.

b. Fractional-reserve banking.

c. Cash flow banking.

d. Creative banking.

e. Deposit ratio banking.

20.The highest source of federal government tax receipts is the:

Group of answer choices

a. General sales tax.

b. Personal income tax.

c. Property tax.

d. Corporate income tax.

e. Estate and gift tax.

10.The question below is based on the following information:

__________________________________________________________

• Personal consumption expenditures $1,200 billion
• Gross private domestic investment $ 700 billion
• Government purchases of goods and services $ 800 billion
• Exports $ 500 billion
• Imports $ 600 billion
• Indirect business taxes $ 300 billion

__________________________________________________________

Gross Domestic Product equals:

Group of answer choices

a. $2,400.

b. $2,500.

c. $2,600.

d. $2,700.

e. $2,800.