The level of output determined by the intersection of the short-run aggregate supply curve and the aggregate demand curve
A. is always above full-employment output.
B. always corresponds to full-employment output.
C. is always below full-employment output.
D. may be above, below, or equal to full-employment output.
Answer: D
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You have invested $1,000 in a stock whose price is increasing at 10 percent a year. Your stock broker, who is never wrong, recommends a stock rising at 20 percent a year. Assuming the broker earns 4 percent of the stock’s value on any purchase or sale of the stock, should you take his or her recommendation?
What will be an ideal response?
The table above gives the demand for a monopolist's output. What is the marginal revenue of increasing production from 4 to 5 units?
A) $70 B) $16 C) $14 D) $6
Van, whose utility of wealth curve is shown in the above figure, owns a home that is valued at $100,000. There is a 10 percent chance that the house will be destroyed by hurricane. The value of insurance to Van is
A) $10,000. B) $15,000. C) $20,000. D) $30,000.
All these are characteristics of a monopoly except,
a. There is one seller of the product b. Has few substitutes c. Controls a large share of the market d. Controls a small share of the market