Our description of the market mechanism included which of the following?

The ratio of a bank’s total reserves to its total deposits is how much of a bank’s deposits it has to keep on hand. A bank is not allowed to lend this out and is forced to keep it in reserve. This ratio is known as the what?

There is a surplus of gasoline on the market. What do our models suggest will happen?

The production possibilities curve model shows us what?

The production possibilities curve model shows us what?

When we described the production possibilities curve, how did we describe production that is not efficient using this model?

When we described the production possibilities curve, how did we describe production that is not efficient using this model?

Say companies invest in more capital. What happens to the production possibilities curve?

Any influence on inflation and employment must be transmitted through either aggregate supply or aggregate demand. Addressing these outcomes is why we model the macro economy in this way.

Any influence on inflation and employment must be transmitted through either aggregate supply or aggregate demand. Addressing these outcomes is why we model the macro economy in this way.