Macro equilibrium is established at which price level, given AD1 and AS1 in Figure 8.3?
A) P1.
B) P2.
C) P3.
D) P4.
Answer: B) P2.
Reason: Thee intersection of AD1 and AS1 represents the equilibrium state which is at rice P2
You might also like to view...
In the United States, the air quality standards used to control criteria pollutants
a. identify the maximum allowable concentrations of each pollutant b. are set to achieve an efficient abatement level using benefit-cost analysis c. are known as the NESHAP d. are achieved by all AQCRs in the nation
During fiscal year 2012, the most recent mentioned in the text, the federal government spent approximately
a. $1.7 billion b. $1.9 trillion c. $3.7 trillion d. $14.0 trillion
Which of the following statements reflect sound economic reasoning?
What will be an ideal response?
The marginal utility gained from the consumption of successive units of a typical good:
A. tends to increase. B. tends to decrease. C. tends to stay the same. D. may increase or decrease depending on the cost of the good.