The aggregate supply and aggregate demand model is used to explain the:
A. overall health of the economy.
B. overall effect of large markets within the economy.
C. interaction of all sellers and all buyers within a particular market.
D. way that unemployment may affect output, but not how price level does.
A. overall health of the economy.
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Moving along the aggregate supply curve,
A) the quantity of capital used increases. B) technology advances. C) the stock of human capital increases. D) only the price level changes. E) the real wage rate is constant.
On average, over the last 50 years, real GDP has grown by about
a. 3 percent per year. b. 2 percent per year. c. 1 percent per year. d. 4 percent per year.
Holding other factors constant, technological progress ________ the real wage and ________ employment.
A. increases; increases B. decreases; increases C. increases; does not change D. increases; decreases
Stability implies a steady rate of economic growth and low inflation.
Answer the following statement true (T) or false (F)