In the aggregate demand and supply model, the:
a. aggregate supply curve is horizontal at full-employment real GDP.
b. vertical axis measures real GDP.
c. vertical axis measures the average price level.
d. All of these.
e. None of these.
c
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Each point on a supply curve represents
A) the highest price buyers will pay for the good. B) the lowest price for which a supplier can profitably sell another unit. C) the lowest price buyers will accept per unit of the good. D) the highest price sellers can get for each unit over time.
When price falls, demand rises
a. True b. False Indicate whether the statement is true or false
What is the difference between the short run and the long run as economists define the two?
If you have a comparative advantage in a particular task, then:
A. you give up less to accomplish that task than do others. B. you have specialized in that task, while others have not. C. you complete it faster than other people. D. you give up more to accomplish that task than do others.