The aggregate demand curve shows:
a. how the equilibrium level of aggregate expenditure changes in response to changes in production.
b. the amount people spend at different real GDP levels.
c. the positive relationship between the price level and real GDP.
d. the negative relationship between aggregate expenditure and real GDP.
e. how the equilibrium level of aggregate expenditure changes as the price level changes.
e
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Of the various models of noncooperative oligopoly behavior discussed in the text, which one has the greatest shortcoming when it comes to explaining observed behavior in an oligopoly market
What will be an ideal response?
An individual firm has little incentive to voluntarily internalize any external costs it was creating because: a. it would shift its cost curves downward
b. it would put it at a competitive disadvantage compared to its rivals. c. it would have to increase output to make up for the added costs. d. they do not care at all about other people.
If the equilibrium quantity is equal to the socially optimal quantity, one can infer that:
A. the supply curve for the activity is below the socially optimal supply curve. B. there is a negative externality associated with this good. C. there is no externality associated with this good. D. there is a positive externality associated with this good.
According to the U.S. Census Bureau, hospitals in the United Kingdom are mostly
A. public. B. public trusts. C. for-profit. D. private.