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Determine what each of the following events will most likely…

Determine what each of the following events will most likely cause in the short run. a. As a result of new discoveries of iron ore used to make steel, producers now pay less for steel, a major commodity used in production. Shift: AD or SRAS? [BLANK-1] Direction: right or left [BLANK-2] Price Level: Increase or Decrease [BLANK-3] National Output: Increase or Decrease [BLANK-4] Unemployment: Increase or Decrease [BLANK-5] b. An increase in the money supply by the Federal Reserve lowers interest rates. Shift: AD or SRAS? [BLANK-6] Direction: right or left [BLANK-7] Price Level: Increase or Decrease [BLANK-8] National Output: Increase or Decrease [BLANK-9] Unemployment: Increase or Decrease [BLANK-10] c. Greater ‘labor union’ activity leads to higher nominal wages. Shift: AD or SRAS? [BLANK-11] Direction: right or left [BLANK-12] Price Level: Increase or Decrease [BLANK-13] National Output: Increase or Decrease [BLANK-14] Unemployment: Increase or Decrease [BLANK-15]

Use the following values in this T-account to answer the que…

Use the following values in this T-account to answer the questios below: (NO COMMAS and round to 2 decimal places only for answers that have decimals) Transport.png 1. Assume that the bank only keeps Required Reserves. What is the reserve requirement in this economy?   [BLANK-1]% 2. Based on the information provided, how much money would be available for investments by this bank?  $ [BLANK-2] 3. Based on the information provided, how much money does this bank hold in form of loans?   $[BLANK-3] Now assume that the bank only invests in ‘Loans’ and they get the same $10000 deposit. 4. What is the value of the money multiplier in this example?   [BLANK-4] 5. How much money could ‘be created’ if the bank keeps no excess reserves and loans out as much money as possible?   [BLANK-5]