In the long run, the price level in an economy is determined solely by:
a. the long-run aggregate supply curve
b. the aggregate demand curve.
c. the amount of cyclical unemployment in the economy.
d. the short-run aggregate supply curve.
e. the potential output level.
b
You might also like to view...
Economists say that long-run economic growth is almost entirely due to:
A. rising productivity. B. population growth. C. a democratically elected government. D. a balanced budget.
Expansionary monetary policy _____ interest rates and _____ aggregate demand.
a) decreases; increases b) decreases; decreases c) increases; increases d) increases; decreases
In an open economy, how many TVs will this country import?
A. 30,000 B. 90,000 C. 60,000 D. 120,000
Jacinda quit her job as a blackjack dealer where she made $42,000 per year to start her own florist business. Her business expenses are $14,000 per year on rent, $21,000 per year on supplies, and $9,000 per year on part time help. As for her personal expenses, her apartment costs her $12,000 per year and her personal bills are an extra $6,000 per year. What is Jacinda's opportunity cost of running the business?
A. $104,000 B. $86,000 C. $62,000 D. $44,000