Which of the following is TRUE?
A) Points along the aggregate supply curve show the equilibrium levels of output and prices that are consistent on the demand side of the economy.
B) Points along the aggregate demand curve show the equilibrium levels of output and prices that are consistent on the supply side of the economy.
C) Aggregate demand shows the levels of GDP and prices where expenditure decisions and production decisions match.
D) Aggregate supply shows the levels of GDP and prices where expenditure decisions and production decisions match.
C
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When an investor buys shares of stock, those stocks must be held for a specified period of time before they can be sold.
Answer the following statement true (T) or false (F)
Pete the Pizza Man produced $87,000 worth of pizzas in the past year. He paid $39,000 to employees, paid $11,000 for vegetables and other ingredients, and paid $5000 in taxes
He began the year with ingredient inventories valued at $1000, and ended the year with inventories valued at $2000. What was Pete's (and his employees') total contribution to GDP this year?
If the marginal propensity to consume (MPC) is 0.90, the value of the spending multiplier is 90
a. True b. False Indicate whether the statement is true or false
Government programs such as Social Security or Medicare are examples of
A. controllable expenditures. B. automatic stabilizers. C. entitlements. D. discretionary spending.