Data on output and aggregate expenditure in Macroland are given in the table below.Real GDP (Y)Aggregate Expenditure (AE)2,0002,3003,0003,2004,0004,1005,0005,0006,0005,900Based on these data, the equilibrium level of output is
A. $32,000.
B. $4,100.
C. $20,000.
D. $5,000.
Answer: D
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In the above table, if the marginal factor cost is $96, how many workers would be hired?
A) 3 B) 4 C) 5 D) 2
Consumer surplus measures the value between the price consumers are willing to pay and the:
A. producer surplus price. B. deadweight gain price. C. actual price paid. D. preference price.
A durable good
A. is used up within 3 years. B. has a life span of more than 3 years. C. is an intangible commodity. D. has an infinite life span.
Consider a monopoly who posts an economic profit of $10,000,000. All else equal, this monopolist should expect
A) entry into its market, prices to fall, profits to fall. B) no entry into its market, prices to remain the same, profits to remain the same. C) exit from its market, prices to rise, profits to rise. D) entry into its market, the need to increase price, profits to remain the same.