In the above figure, the aggregate demand curve is AD2, so the short-run equilibrium level of real GDP is
A) $16 trillion.
B) $16.5 trillion.
C) more than $16 and less than $16.5 trillion.
D) None of the above answers is correct.
B
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Macroeconomic issues include all of the following EXCEPT:
A. regulation of natural monopolies B. economic interdependence among nations C. economic growth and living standards D. inflation
Constant returns to scale means that, given any constant x > 0
A) xzF(xK, xNd)= zF(xK, xNd). B) xzF(xK, xNd) > zF(xK, xNd). C) xzF(xK, xNd) < zF(xK, xNd). D) xzF(xK, xNd) = zxF(K, Nd).
A broad government initiative to reduce a country's reliance on agriculture and promote high-technology industries is an example of ________ policy.
A. monetary B. structural C. aggregation D. fiscal
Other things being equal, suppose that the demand for wheat in constant quality units increases. The increase in demand will cause
A. a higher equilibrium price and higher equilibrium quantity of wheat. B. a higher equilibrium quantity, but a lower equilibrium price of wheat. C. a surplus of wheat. D. fall in the market clearing price of corn, a substitute for wheat.