What is the relationship among the AD, SRAS and LRAS curves when the economy is in macroeconomic equilibrium?
What will be an ideal response?
When the economy is in long-run equilibrium, the short-run aggregate supply curve and the aggregate demand curve intersect at a point on the long-run aggregate supply curve.
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A truly voluntary exchange
A) has nothing to do with values, only with things. B) is always an exchange of equal values. C) is not an exchange of equal values. D) is usually an exchange of equal values.
Modern antitrust policy began in response to
A. abuses of market power in the oil industry. B. the inability of railroads to compete effectively with the new trucking industry. C. the charge that the rights of big business were not adequately protected. D. attempts by business leaders to pack Congress with corrupt legislators.
The marginal propensity to consume (MPC)
A. is greater than 1 only if the marginal propensity to save is greater than 1. B. shows how much of an extra dollar of real disposable income is spent. C. shows how much real disposable income changes when consumption falls. D. shows the percentage of real disposable income consumed at each level of income.
What does the antitrust exemption give professional baseball team owners that owners of other professional teams don't have?
A. higher gate receipts B. wider marketing areas C. longer contracts with the players D. leverage over the cities in which they operate