Which of the following correctly describes the aggregate supply curve?
a. A curve that shows the level of real GDP demanded at different possible price levels.
b. A curve that shows the level of real GDP produced at different possible price levels.
c. A curve that shows the level of quantity supplied by firms in a market at different possible prices, such as the supply of oranges in the oranges market.
d. None of the above.
b
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The average output produced per worker is one way of measuring
A) inflation. B) the interest rate. C) employment. D) productivity.
The major economic effect of Medicare subsidies is
A) that the number of physicians has decreased since compensation is low. B) to increase the price of medical services and reduce the quantity demanded. C) to increase the price of medical services and increase the quantity demanded. D) to lower the price of medical services and reduce the quantity demanded.
The ratio (in physical units) at which two countries trade goods is known as the
a. opportunity cost b. marginal social cost c. price to earnings ratio d. comparative advantage ratio e. terms of trade
For each $1 of a tax cut, economists expect consumption to
a. decrease by $1. b. decrease by less than $1. c. increase by less than $1. d. increase by $1.