We Have Drawn the SAS and SP Curves as Straight

question 11

Multiple Choice

We have drawn the SAS and SP curves as straight lines for convenience.More realistically,rising output ________ the structural unemployment problem and the effect of this on wages causes those curves to ________ in slope.

• A)aggravates,increase
• B)aggravates,decrease
• C)alleviates,increase
• D)alleviates,decrease

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Definitions:

Balance Sheet

A financial statement that summarizes a company's assets, liabilities, and shareholders' equity at a specific point in time.

Required Reserve Ratio

A mandated reserve that banks must keep on hand, usually a percentage of their deposits, determined by the central bank to ensure financial stability.

Checkable Deposits

Checkable deposits are bank account balances that depositors can easily withdraw or write checks against at any time, constituting a primary medium of exchange for personal and business transactions.

Required Reserve Ratio

The proportion of depositors' balances banks must have on hand as cash, mandated by the central bank.