In the macroeconomic model of aggregate supply and aggregate demand, price is:

A. calculated as a weighted average of the prices of all goods and services.
B. the measure of the value of all goods and services produced by the economy.
C. represented by GDP.
D. None of these is true.


Answer: A

Economics

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Indicate whether the statement is true or false

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Through correspondent banking, large banks provide services to small banks, including

A) loan guarantees. B) foreign exchange transactions. C) issuing stock. D) debt reduction.

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When income rises

A) demand for a normal good rises. B) demand for a normal good falls. C) demand for an inferior good rises. D) quantity of a normal good demanded rises.

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To eliminate a recessionary gap, the expenditure schedule should be

a. shifted downward. b. shifted upward. c. made steeper. d. made flatter.

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