The aggregate demand and aggregate supply curve intersect
A. at potential GDP.
B. below potential GDP.
C. above potential GDP.
D. at a point which may or may not be equal to potential GDP.
Answer: D
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The quantity demanded of a good reflects
A) the number of units of a good people actually purchase. B) the number of units of a good suppliers will provide. C) the number of units of a good people plan to purchase at different prices. D) the number of units of a good people need to purchase.
In the above figure, assume the aggregate demand of the economy is AD2 and the Fed actions move aggregate demand to AD1. In this situation, the Fed has practiced
A) contractionary monetary policy. B) expansionary monetary policy. C) irresponsible fiscal policy. D) Keynesian fiscal policy.
A nation's balance of payments can be affected by
A) the country's inflation rate relative to other nations' inflation rates. B) the country's population increases relative to other nations' populations. C) per capita GDP relative to other nations' per capita GDP. D) none of the above.
Which of the following were invented centuries ago in China?
a. gunpowder b. the wheelbarrow c. printing with movable type d. all of the above