Which good/service can be considered being closest to having a price elasticity of demand that is perfectly price inelastic:

Fiscal deficits incurred by the government may be desirable in the short run if they:

Refer to the graph. Suppose the economy is below potential output. Where does such a point in the graph exist and what would be the most appropriate policy to return the economy to potential output?

A reduction in the federal funds rate could be caused by:

Use the 5 balance sheets in order to answer the following question: Question: Suppose that an individual took out a $1,000,000 loan from Bank of America to purchase a home. Bank of America has $0 in Central Bank Reserves and $1,000,000 in treasury bonds on its balance sheet. Suppose Bank of America borrows $1,000,000 in Central Bank Reserves from the Federal Reserve at the Discount Window to transfer $1,000,000 to Wells Fargo on behalf of the home buyer. What is a possible reason Bank of America acquired Central Bank Reserves in this manner as opposed to other means?  

#6. Show that the limit does not exist.                  

Suppose the target rate of unemployment is 2 percent but the actual rate of unemployment is 6 percent. Given this information, which of the following policies is the least appropriate according to the AS/AD model?

Refer to the graph, which is shown below. Total utility is at its maximum at point:

Refer to the graph below.  Suppose that the world supply curve is SW1.  What is the balance of trade and what is most likely going to happen to the value of the currency based on the balance of trade?  

Refer to the graph.  Suppose the economy is at SAS2 and AD3. What is a possible way the economy can return to potential output? What dynamic price level feedback effect could prevent the return to potential output? How would the dynamic price level feedback effect show up in the graph?