The equilibrium level of GDP is the level at which
a. aggregate demand exceeds output.
b. aggregate demand equals output.
c. aggregate demand is less than output.
d. inventories are being depleted to meet demand.
b
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The business cycle has two phases,
A) expansion and peak. B) recession and trough. C) peak and trough. D) recession and expansion. E) expansion and trough.
You are the new vice president in charge of advertising at Taco Bell. In your upcoming advertising campaign, you plan to degrade the fast food competitor whose product is the closest substitute for Taco Bell's tacos
That would be the fast food chain whose cross elasticity of demand with your tacos is equal to A) negative 2.11. B) negative 1.75. C) positive 1.55. D) positive 1.00.
National income is the sum of
a. wages and profits. b. wages, interest, profits, and rent. c. interest and rent. d. wages, transfer payments, and tax revenues.
Increases in government spending or tax cuts normally push interest rates up.
Answer the following statement true (T) or false (F)