The aggregate demand curve shows the equilibrium output level at different price levels determined from the income-expenditures model
Indicate whether the statement is true or false
TRUE
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If MU = MC = P, an economist can judge with certainty that the distribution of output is
a. fair. b. equal. c. unbiased. d. efficient.
Suppose that some country had an adult population of about 25 million, a labor-force participation rate of 60 percent, and an unemployment rate of 6 percent. How many people were employed?
a. 0.9 million b. 14.1 million c. 15 million d. 23.5 million
Which statement is true?
A. M1 is larger than M2. B. M1 + M2 = M3. C. M2 + large denomination time deposits = M3. D. M1 times M2 = M3.
Diminishing marginal utility explains why:
A. the income effect exceeds the substitution effect. B. the substitution effect exceeds the income effect. C. supply curves are upsloping. D. demand curves are downsloping.