Which of the following is included in the aggregate demand for goods and services?

What problem is caused by subsidizing a natural monopoly regulated using a marginal cost pricing rule?

A) The regulated firm ends up earning an economic profit. B) Consumers pay too much for the product of the monopoly. C) This policy is a two-part tariff, which creates inefficiency. D) The taxes required to gain the revenue used as the subsidy result in a deadweight loss that subtracts from gains in efficiency which result from use of the marginal cost pricing rule. E) The regulated firm goes out of business if it is subsidized.

Both monetary policy and fiscal policy were used in response to the recession of 2007–2009.

Answer the following statement true (T) or false (F)

The asset demand for money is related to which function of money?

A. store of value B. unit of accounting C. standard of deferred payment D. medium of exchange

At equilibrium, quantity sold equals the quantity bought. This implies that

A) to sell more, producers require more in payment than consumers are willing to pay. B) government regulation is necessary. C) to sell less would require a lower price but would yield greater profit. D) those who don't buy have been treated unfairly.