Aggregate demand and aggregate supply must be combined to determine the price level and the "real" GDP
Indicate whether the statement is true or false
TRUE
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If 11 workers can produce a total of 54 units of a product and a 12th worker has a marginal product of 6 units, then the average product of 12 workers is
A) 60 units. B) 54 units. C) 48 units. D) 5 units.
What best describes the economic standing of the colonies on the eve of the Revolution?
a. The colonies were one of the richest nations in the world and had very little income inequality because of the many opportunities that existed. b. The colonies had a low per capita income and had little income inequality. c. The colonies were one of the richest nations in the world and had a significant amount of income inequality. d. The colonies had a low per capita income and had a significant amount of income inequality.
The market where firms purchase factors of production is referred to as the
a. product market. b. resource market. c. capital market. d. foreign exchange market.
Which of the following will occur when an economy is faced with a liquidity trap situation?
A) A reduction in the price level will cause a rightward shift in the aggregate demand curve. B) A reduction in the price level will cause a leftward shift in the aggregate demand curve. C) The aggregate demand curve is now vertical. D) The aggregate demand curve is now upward sloping.