The aggregate supply and aggregate demand model describes the interaction of which macroeconomic variables?
A. Output and the price level
B. Employment and immigration
C. Prices and immigration
D. Output and number of sellers
A. Output and the price level
You might also like to view...
Suppose a monopoly has constant marginal costs of $40 per unit. Demand for the monopolist’s product is Q = 100 - 0.5P.
i. What are the profit maximizing price and quantity for this monopoly? Explain how you arrived at your answer. ii. How many units of the product would the competitive market supply? What would the equilibrium price be? Explain how you arrived at your answer. iii. Calculate how much consumer surplus would be lost if this market started off as perfectly competitive but then became monopolistic. iv. Calculate how much producer surplus would be gained if this market started off as perfectly competitive but then became monopolistic. v. Briefly explain how your answers to parts iii and iv relate to the deadweight loss created by the monopoly.
Equilibrium in a perfectly competitive market results in the greatest amount of economic surplus, or total benefit to society, from the production of a good
Why, then, did Joseph Schumpeter argue that an economy may benefit more from firms that have market power than from firms that are perfectly competitive?
If a bank's liabilities are more sensitive to interest rate movements than are its assets, then
A) an increase in interest rates will reduce bank profits. B) a decrease in interest rates will reduce bank profits. C) interest rates changes will not impact bank profits. D) an increase in interest rates will increase bank profits.
The fraction of capital that wears out every year is known as ________
A) gross investment B) depreciation C) net investment D) devaluation