Short-run equilibrium output is the level of output at which actual output:
A. equals potential output.
B. maximizes firm profits.
C. equals planned aggregate expenditure.
D. equals real GDP per capita.
Answer: C
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Suppose you buy an iPod for $100 . If your consumer surplus is $30, your willingness to pay is $70
a. True b. False Indicate whether the statement is true or false
Refer to Exhibit 6-2. The employment rate in year 2 is
a. 12 1/2 percent. b. 75 percent. c. 87 1/2 percent. d. 30 percent. e. 50 percent.
Whether exchanges are strictly domestic or across international borders, every party to any transaction
A. must pay the highest retail value. B. expects to gain. C. tries to break even. D. produces the highest rate of output.
If the percentage change in the quantity demanded of a good is greater than the percentage change in price, price elasticity of demand is:
A. elastic. B. inelastic. C. perfectly inelastic. D. perfectly elastic.