The aggregate supply curve:
a. shows the level of real GDP produced in the economy at different possible price levels during a period of time.
b. is horizontal in the Keynesian range.
c. is vertical in the classical range.
d. all of these.
d
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The ability to make counteroffers transforms bargaining from a game in which ___________ trumps everything to a game in which ____________ is the winning strategy.
A. patience; first-mover advantage B. commitment strategy; self-interested behavior C. first-mover advantage; patience D. first-mover advantage; cooperation
An important effect of fractional reserve banking is that: a. bankers' choices about how much to lend can affect the money supply
b. the commercial banking system has complete control over total reserves. c. bankers always turn every dollar of excess reserves into loans. d. a new bank deposit allows a bank to extend loans of the same amount to borrowers.
The slope of a graph that shows a direct relationship is
What will be an ideal response?
Firms like to know the price elasticity of demand because it determines how price changes affect:
A. the supply curve. B. costs. C. revenues. D. taxes.