In the macroeconomic model of aggregate supply and aggregate demand, price is:
A. the measure of the value of all goods and services produced by the economy.
B. represented by GDP.
C. calculated as a weighted average of the prices of all goods and services.
D. None of these is true.
C. calculated as a weighted average of the prices of all goods and services.
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A firm sells in a competitive market in which price is $10. Its marginal cost is 2 + 0.5Q. Determine the profit-maximizing level of output.
What will be an ideal response?
The compensated demand curve holds the consumer's utility fixed as the price changes
Indicate whether the statement is true or false
If a country has an absolute advantage in the production of every good, it cannot benefit from trade with other countries
a. True b. False
How does the U.S. unemployment rate generally behave during expansionary periods?
a. It rises. b. It falls. c. It remains constant. d. It fluctuates rapidly.