Equilibrium occurs when the aggregate demand curve intersects the aggregate supply curve.
Answer the following statement true (T) or false (F)
True
This macro equilibrium is associated with a particular price level and level of GDP that equals, exceeds, or falls short of full-employment output.
You might also like to view...
If the absolute value of the price elasticity of demand for a good is .75, the demand for that good is described as
A. inferior. B. normal. C. inelastic. D. elastic.
Answer the next question based on the following consolidated balance sheet for the commercial banking system.AssetsLiabilities + Net WorthReserves$50,000Checkable deposits$120,000Loans75,000Stock shares130,000Securities25,000 Property100,000 If the reserve requirement is 15% and the table above represents the balance sheet for the whole commercial banking system rather than a single bank, then loans and deposits could expand by a maximum of approximately
A. $415,373. B. $333,500. C. $120,000. D. $213,333.
What makes it extremely difficult for cartels to function effectively without government assistance?
A) Cartel members cannot agree among themselves on the optimum price because all have different costs. B) High prices encourage cartel members to offer discounts, and they attract new entrants to the industry. C) Marginal cost will not equal marginal revenue except at output levels beyond the cartel's capacity. D) Public interest considerations usually require an output greater than the cartel's net revenue maximizing output. E) The hostility of the public to price exploitation makes it difficult for the cartel to defend itself against the consequences of popular hostility.
If an individual uses money from a demand deposit account to purchase a U.S. savings bond
A) M1 decreases and M2 stays the same. B) M1 stays the same and M2 increases. C) M1 stays the same and M2 stays the same. D) M1 decreases and M2 decreases.