The aggregate demand curve and the aggregate supply curve interact to determine:
a. the equilibrium levels of defense spending and price level.
b. the equilibrium levels of price and real GDP.
c. the equilibrium levels of government revenue and government expenditure for the economy.
d. the equilibrium levels of money supply and money demand for the economy.
b
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If at a price of $24, Octavia sells 36 home-grown orchids and at $30 she sells 24 home-grown orchids, the demand for her orchids is
A) inelastic. B) unit elastic. C) perfectly elastic. D) elastic.
Suppose a bank has $10 million in capital, $100 million in assets, and after-tax profit of $2 million? what is its return on assets? What is its return on equity?
What will be an ideal response?
The World Bank specializes in making loans to
A) industrialized nations. B) communist nations. C) developing nations. D) African nations.
Which of the following will result in the greatest deadweight loss from tax?
a. A tax on gasoline b. A tax on Porsche cars c. A tax on salt d. A tax on cigarettes