What is produced and consumed in the economy is determined jointly by
A) government policies and the economy's productive capacity.
B) the economy's productive capacity and the preferences of consumers.
C) the preferences of consumers and the behavior of business managers.
D) the behavior of business managers and government policies.
B
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If Veronica withdraws $1,500 from her checking account and holds it as currency, then M1 will ________ and M2 will ________
A) increase; decrease B) increase; not change C) not change; decrease D) not change; not change
The school of thought that assumes that real GDP is determined by aggregate supply, whereas the equilibrium price level is determined by aggregate demand is known as _____
a. neoclassical economics b. classical economics c. new Keynesian economics d. Keynesian economics e. Marxist economics
Demand for an input is derived from the demand for the final product
a. True b. False Indicate whether the statement is true or false
Suppose that real GDP grew more in Country A than in Country B last year
a. Country A must have a higher standard of living than country B. b. Country A's productivity must have grown faster than country B's. c. Both of the above are correct. d. None of the above are correct.