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Currency in circulation plus bank reserves:

Suppose that your grandma sends you $200 for your birthday, and you deposit the money in your checking account. The reserve ratio is 10%. Based on this deposit, the bank’s excess reserves have increased by $_____, and if the bank lends these new excess reserves, the money supply could eventually grow by as much as an additional $_____.

The long-run aggregate supply curve is:

In the long run, the inflation rate has:

Assume that the marginal propensity to consume is 0.8 and that potential output is $900 billion. If real GDP is $700 billion, _____ government spending by $_____ billion would bring the economy to potential output.

The official unemployment rate reported by the government may tend to understate the amount of unemployment because it:

According to purchasing power parity, if the price of a Big Mac is lower in India and China than in Europe, then the currency(ies) of _____ is(are) undervalued.

A checking account with $500 is:

The United Arab Emirates’ (UAE) currency, the Emirate Dirham, trades at a fixed exchange rate. If the UAE uses monetary policy to change the exchange rate of the Emirate Dirham from $1.20 to $1.00, the Emirate Dirham has:

In the circular-flow diagram, resources such as capital and labor are bought and sold in: