Suppose the required reserve ratio is 20% and the supply of base currency is 100,000 in country A.In case other factors are not considered, if central bank adjuststhe required reserve ratio to 10% ,how will the money supply change？
A. Money supply will drop by 10,000.
B. Money supply will drop by 500,000.
C. Money supply will increase by 500,000.
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Which of the following statements is most accurate？
A. The three types of unemployment include underemployment, structural unemployment and cyclical unemployment.
B. The three types of unemployment include frictional unemployment, structural unemployment and cyclical unemployment.
C. The three types of unemployment include frictional unemployment, temporal unemployment and cyclical unemployment.
Country A is experiencing high inflation combined with high level of unemployment, which of the following best describes the situation ？
A. Disinflation.
B. Hyperinflation.
C. Stagflation.
Regarding aggregate demand curve, which of the following statements is most accurate？
An increase in government spending will cause the aggregate demand curve to shift to the right.
B. Stock market crash will cause the aggregate demand curve to shift to the right.
C. Low business confidence will cause the aggregate demand curve to shift to the right.
In an oligopoly market, the demand curve for a manufacturer is approximate horizontal. This situation is most relevant to which of the following models？
A. Kinked demand model.
B. Stackelberg model.
C. Nash equilibrium model
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