In the Aggregate Demand - Aggregate Supply diagram in Figure 8.1, Box 2 should be filled with 
A. AD for Aggregate Demand.
B. AS for Aggregate Supply.
C. PI* for macroeconomic equilibrium Price Index.
D. RGDP* for macroeconomic equilibrium Real Gross Domestic Product.
Answer: C
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If the economy were experiencing a recession, which of the following would Keynes be in favor of?
A. Households should save less and consume more goods and services. B. The government should increase taxes to balance its budget during a recession. C. Businesses should decrease spending on new equipment until the economy improves. D. The government should discourage companies from exporting goods to foreign countries while people at home are unable to buy basic necessities.
Which factors explain labor productivity?
A) diminishing returns; the quantity of labor per hour worked B) diminishing returns; the quantity of capital per hour worked C) technological change; the quantity of capital per hour worked D) technological change; the quantity of labor per hour worked
Which of the following is not associated with the monopoly market structure?
a. Many sellers. b. A single seller. c. A unique product. d. Impossible entry into the market.
The Board of Governors consists of ________ governors appointed for staggered ________ terms.
A. 7; 14-year B. 7; 12-year C. 5; 14-year D. 5; 12-year