Answer:
b. 502,000 units
Explanation:
- X
Desired Ending 34,000
R1 320,000
R2 180,000
Beginning (32,000)
Production Budget 502,000
32,000 + P = 34,000 + (320,000 + 180,000)
34,000 + 320,000 + 180,000 - 32,000 = 502,000 = Production
Answer:
The correct answer is c. incorrect because wages and prices tend to be highly inflexible downward.
Explanation:
When there is unemployment the demand curve slopes downwards but wages and prices are inflexible downwards. The above statement is therefore incorrect because the wages and prices are highly inflexible and the workers may not be willing to work for a lower pay. This is highly dynamic and depends on the workers choices and needs.
Answer:
A rise in demand for reserves will shift the demand for reserves curve to the right which will cause a rise in interest rates. The Fed will then have to act to reduce this interest rate because they would prefer that it remained at the specific rate as mentioned.
To do this they will embark on Open Market Operations aimed at increasing money supply as this will reduce interest rates by increasing the supply of reserves because it will shift the supply curve for reserves to the right. The new equilibrium will be a lower interest rate.
The relevant Open Market Operation will be the buying of bonds from the public.