The short-run equilibrium level of real output and the price level are determined by the intersection of the aggregate demand curve and the short-run aggregate supply curve
a. True
b. False
Indicate whether the statement is true or false
True
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The circular flow model demonstrates
A) the role of the government in overseeing the market system. B) the roles played by households and firms in the market system. C) how demand and supply for goods and services are brought into equilibrium. D) how shortages and surpluses are eliminated in a market.
If you get a job and are never required to join the union, this is known as a(n)
A) closed shop. B) open shop. C) agency shop. D) union shop.
Under adaptive expectations theory, people persistently:
a. underestimate inflation when it is slowing down. b. overestimate inflation when it is accelerating. c. underestimate inflation when it is accelerating. d. adapt to the prevailing inflation rate.
According to the quantity theory of money, velocity:
A. varies with changes in the growth rate of the money supply. B. varies substantially with changes in the rate of interest and the expected rate of inflation. C. is virtually constant, responding only to changes in the underlying institutional structure. D. is fairly constant, responding only to changes in the expected rate of inflation.