The combination of price level and real output that is compatible with both aggregate demand and aggregate supply is the definition of
A. Macro equilibrium.
B. Disposable income.
C. Real expenditures.
D. Full-employment GDP.
Answer: A
You might also like to view...
The joining of two or more firms competing in the same market with the same good or service:
a. Stockholm enterprise b. partnership c. vertical merger d. horizontal merger e. Pineapple Ring
Refer to the graph shown. An unregulated, profit-maximizing monopolist will charge a price of:
A. P3 and produce Q3 units of output. B. P2 and produce Q2 units of output. C. P1 and produce Q1 units of output. D. P3 and produce Q1 units of output.
Suppose the president of country A opens this economy to trade with the rest of the world in 2010. Furthermore, suppose that the investment demand is the same as in 2009. Now, instead of being provided the equilibrium level of SP, we are provided with the SP curve: r =0.025+0.000025Q, where r is still the real interest rate. We are also told that the capital inflow equals $200 billion in 2010. For this part of the problem assumed that the government has a balanced budget in the year 2010. Is this country borrowing from or lending to foreign countries?
What will be an ideal response?
From the perspective of the employer, which of the following might be a substitute for unskilled labor?
A) Computers B) Skilled labor C) Tools D) Electricity E) All of the above.