The aggregate demand curve shows the combinations of output and the price level that put the economy on
A. the IS curve.
B. the FE line, the IS curve, and the LM curve.
C. the FE line and the IS curve.
D. the IS curve and the LM curve.
Answer: D
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Refer to the scenario above. The average total cost of Firm A when it produces 100 pens is $3, and the average total cost of Firm B when it produces 50 pens is $7. At these levels of production, which of the following statements is true?
A) Both firms incur losses. B) Firm A incurs a loss but Firm B makes a profit. C) Firm B incurs a loss but Firm A makes a profit. D) Both firms make profits.
Which of the following conveys the correct relationship between production and inventories?
A. If planned inventories > actual inventories then reduce production. B. There is not clear relationship between inventories and production. C. If planned inventories < actual inventories then decrease production. D. If planned inventories > actual inventories then increase production.
an inflation rate in excess of 200%, lasting at least one year
What will be an ideal response?
Command-and-control policies usually:
A. result in higher costs for firms when compared to pollution taxes. B. don't raise prices as much to consumers as do pollution taxes. C. result in less pollution being produced than when pollution taxes are used. D. result in lower costs for firms when compared to pollution taxes.