Most economists believe that the immediate cause of cyclical changes in the levels of real output and employment is:
What will be an ideal response?
the changes in the level of total spending
You might also like to view...
Firm A is a monopoly. The demand for its output is p = 90 - Q. Production is such that Q = L. Firm A hires labor in a competitive market where the wage is $10. Firm A will hire
A) 10 units of labor. B) 20 units of labor. C) 30 units of labor. D) 40 units of labor.
If the price level increases, then there will be
a. a movement upward along the AD curve b. a downward movement along the AD curve c. an AD curve shift to the right d. an AD curve shift to the left e. an AS curve shift to the right
when aggregate expenditure is more than GDP firms spent less on capital goods than they planned
a. true b. false
Why does it make sense for unprofitable firms to stay in business?
What will be an ideal response?