When the economy is operating at a point where aggregate demand equals short-run aggregate supply, it must be true that:
A. aggregate demand also equals long-run aggregate supply.
B. the short-run level of output is not the same as long-run potential output.
C. prices are higher than expected prices.
D. None of these must be true.
D. None of these must be true.
You might also like to view...
A private good:
A. is a good for which consumption involves perfect rivalry. B. is completely nonexcludable. C. is often provided by the government. D. imposes a negative externality when it is consumed by any one individual.
Explain why some shifts to the aggregate demand curve are temporary and why some are permanent
What will be an ideal response?
A currency system in which governments try to keep the values of their currencies constant against another is called a ________ exchange rate system.
A. fixed B. stable C. consistent D. flexible
If a person must pay the first $300 of covered health-care expenses in a year, this is called their
A. lifetime maximum. B. co-payment. C. deductible. D. maximum out-of-pocket.