In the self-correcting AD/AS model, the economy's short-run equilibrium position is indicated by the intersection of which two curves?
a. Long-run aggregate supply and aggregate demand.
b. Long-run aggregate demand and short-run personal consumption expenditures curve.
c. Short-run aggregate supply and aggregate demand.
d. Short-run aggregate supply and long-run aggregate supply.
c
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Our free-rider model of voluntary giving suggests that, when the government subsidizes private giving to charity, it's contribution will simply "crowd out" the private contributions so long as no one is at a corner solution.
Answer the following statement true (T) or false (F)
The market supply is the ________ of the individual supplies of all the potential sellers
A) sum B) product C) square of the sum D) square root of the sum
The demand for labor is a derived demand. Explain what is meant by the term "derived demand."
What will be an ideal response?
The Surgeon General announces that eating chocolate increases tooth decay. As a result, the equilibrium price of chocolate
a. increases, and producer surplus increases. b. increases, and producer surplus decreases. c. decreases, and producer surplus increases. d. decreases, and producer surplus decreases.