In the short-run macroeconomic equilibrium
A) real GDP equals potential GDP and aggregate demand determines the price level.
B) the price level is fixed and short-run aggregate supply determines real GDP.
C) real GDP and the price level are determined by short-run aggregate supply and aggregate demand.
D) real GDP is always less than potential GDP.
C
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A decrease in demand is represented by
a. a shift outward of the entire demand curve. b. a shift inward of the entire demand curve. c. a movement along the demand curve in a southeasterly direction. d. a movement along the demand curve in a northwesterly direction.
Typically, coffee and tea are
a. complements b. substitutes c. inferior goods d. unrelated goods e. nonmarket goods
In the Case in Point on "The Monks of St. Benedict's," the Monks got out of the egg business largely because:
A) there was a large increase in the supply of eggs from other producers. B) of the increase in the price of chicken feed. C) the Pope forbade them from working on Sunday. D) a huge increase in the demand for eggs caused the price of eggs to increase, and their operation was too small to meet the demand.
Benefits that accrue directly to the decision maker of a market exchange are called:
A. social benefits. B. network benefits. C. external benefits. D. private benefits.