In the dynamic model of ad-as, the economy is in . long run equilibrium in year 1 and is expected to be in short-run equilibrium bellow potential gdp in year 2, and the federal reserve pursues the appropriate policy, because policy will work more quickly than the automatic adjustment mechanism this will result in.

a) real gdp lower than what would occur if no policy had been pursued.

b) unemployment rates higher than what would occur if no policy had been pursued.

c) inflation higher than what would occur if no policy had been pursued.

d) short-term interest rates higher than what would occur if no policy had been pursued.

Which of the following best describes the purpose of raising and lowering the required reserve ratio? a. to make sure that government spending does not result in either a surplus or deficit. b. to stimulate economic growth by making it less expensive for producers to get loans. c. to manage the economy by increasing or decreasing the amount of loans being made. d. to regulate the activity of private banks to assure an equitable distribution of wealth. 2b2t

Which term refers to the cost that motivates an economic decision

About time delivery co. incurred the following costs related to trucks and vans used in operating its delivery service: classify each of the costs as a capital expenditure or a revenue expenditure. 1. changed the oil and greased the joints of all the trucks and vans. 2. changed the radiator fluid on a truck that had been in service for the past four years. 3. installed a hydraulic lift to a van. 4. installed security systems on four of the newer trucks. 5. overhaul the engine on one of the trucks purchased three years ago. 6. rebuilt the transmission on one of the vans that had been driven 40,000 miles. the van was no longer under warranty. 7. removed a two-way radio from one of the trucks and installed a new radio with a greater range of communication. 8. repaired a flat tire on one of the vans. 9. replaced a truck's suspension system with a new suspension system that allows for the delivery of heavier loads. 10. tinted the back and side windows of one of the vans to discourage theft of contents.