The output level at which the aggregate demand curve intersects the aggregate supply is always the level at which
A. Saving is zero.
B. Micro equilibrium is achieved.
C. Macro equilibrium is achieved.
D. Full employment is sustainable by the economy.
Answer: C
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The tools at the disposal of the Fed for changing the quantity of money do NOT include
A) open market operations. B) changing the required reserve ratio. C) changing discount rates. D) increasing the number of commercial banks.
Suppose you received a 3 percent increase in your nominal wage. Over the year, inflation ran about 6 percent. Which of the following is true?
a. Your real wage fell. b. Your nominal wage fell. c. Both your nominal and real wages decreased. d. Although your nominal wage fell, your real wage increased. e. Both nominal and real wages increased.
If the exchange rate changes from 1.5 euros per dollar to 1.0 euro per dollar, the euro has
A) depreciated against the dollar. B) appreciated against the dollar. C) fallen inversely in value. D) depreciated against the euro. E) appreciated against the euro.
Which of the following could be threatening to an existing monopoly structure?
a. impossible-to-overcome barriers to entry b. the depletion of alternative resources that could be used to produce the good that is being produced by the monopolist c. the extension of years enforcing a patent right d. mergers e. technological innovation that makes the old techniques of producing a good obsolete