The long-run aggregate supply curve can never shift (Points :2) True False 2.

1. The long-run aggregate supply curve can never shift (Points :2)TrueFalse2. The Keynesian portion of the short-run aggregate supply (SAS) curve would be relevant during a recessionary situation (Points :2)TrueFalse3. The short-run aggregate supply (SAS) curve slopes upward because households spend more as their incomes increase (Points :2)TrueFalse4. Either a decrease in the nominal money supply by the Federal Reserve, all else held constant, or an increase in the price level, all else held constant, will shift the aggregate demand curve to the left(Points :2)TrueFalse5. Stagflation occurs when the aggregate demand (AD) curve shifts out on the upward sloping portion of the short-run aggregate supply (SAS) curve (Points :2)TrueFalse6. If the reserve requirement (rr) is 0.2, what is the simple deposit multiplier? If, in addition, thew currency deposit ratio © is 0.05 and the excess reserve ratio (e) is 0.15, what is the money multiplier? Explain why the money multiplier differs from the simple deposit multiplier (Points :3)7. If the reserve requirement (rr) is 0.2, what is the simple deposit multiplier? If, in addition, the currency deposit ratio, C, is 0.05 and the excess reserve ratio (e) is 0.15, what is the money multiplier? Explain why the money multiplier differs from the simple deposit multiplier (Points :3)8. If the reserve requirement (rr) is 0.2, and, if, in addition, the currency deposit ratio (c) is 0.05 and the excess reserve ratio (e) is 0.15: Explain why the money multiplier differs from the simple deposit multiplier in this example. (Points :4)

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