Which of the following adjust to bring aggregate supply and demand into balance?
a. the price level and real output
b. the real rate of interest and the money supply
c. government expenditures and taxes
d. the saving rate and net exports
a
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The classical model assumes that
A) imperfect competition predominates in most markets. B) people have money illusion. C) wages and prices are flexible. D) wages are flexible but prices are not.
The price elasticity of demand for a good is influenced by which of the following factors?
a. the responsiveness to changes in income b. the cost of resources to produce the good c. the availability of substitutes d. the level of competition among sellers e. the number of uses for the good
A monopolist's goal is to maximize
a. costs b. sales c. profit d. market power e. price
Which of the following has made it possible for investors without any special business skills to benefit from the ownership of corporate America?
A) all of the above B) the availability of mutual funds, which make it possible for even small investors to purchase a diverse stock portfolio at a low cost C) the virtual disappearance of business failures among corporations with publicly traded stock shares D) an increased tendency of small investors to buy and sell stock frequently