The level of output determined by the intersection of the short-run aggregate supply curve and the aggregate demand curve:
A. is always below full-employment output.
B. is always above full-employment output.
C. always corresponds to full-employment output.
D. may be above, below, or equal to full-employment output.
Answer: D
You might also like to view...
In the 1930s the United States charged an average tariff rate
A) that cut its exports to other countries by 50 percent. B) that exceeded 50 percent. C) that was less than its average tariff rate in 2007. D) that was less than 2 percent.
If money demand does not depend upon income, then
a. monetary policy cannot have any effect upon the economy. b. monetary policy will only affect the level of the price level. c. monetary policy will only affect interest rates. d. monetary policy will have a larger impact on income.
As the marginal propensity to consume (MPC) decreases, the spending multiplier:
A. increases. B. decreases. C. remains constant. D. becomes undefinable.
At the Larson Bakery the marginal products of the first, second, and third sales clerks are 30, 27, and 21 customers served, respectively. The total product (number of customers served) of the three sales clerks is
A. 30. B. 57. C. 78. D. 109.