Which of the following is true?
A) Points along the aggregate supply curve show the equilibrium levels of output and prices that are consistent on the demand side of the economy.
B) Points along the aggregate demand curve show the equilibrium levels of output and prices that are consistent on the supply side of the economy.
C) Aggregate demand shows the levels of GDP and prices where expenditure decisions and production decisions match.
D) Aggregate supply shows the levels of GDP and prices where expenditure decisions and production decisions match.
C
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Which of the below outcomes is the result of a Nash equilibrium in pure strategies for the game in Scenario 13.10?
A) -5, 5 B) 10, -10 C) 8, -8 D) 0, 0 E) There is no pure strategy equilibrium in this game.
Other things being equal, an increase in the rate of interest causes a(n):
a. upward movement along the demand for money curve. b. downward movement along the demand for money curve. c. rightward shift of the demand for money curve. d. leftward shift of the demand for money curve.
Effective price floors keep market price
A. above the equilibrium price and create surpluses. B. above the equilibrium price and create shortages. C. below the equilibrium price and create surpluses. D. below the equilibrium price and create shortages.
Socialism is correctly described by which of the following statements?
A. Central planning is used exclusively to answer the basic economic questions. B. Markets are used exclusively to answer the basic economic questions. C. Tradition is used exclusively to answer the basic economic questions. D. Government ownership of many resources and centralized decision-making answers the basic economic questions.