Describe the difference between a microeconomic demand curve and an aggregate demand curve
A microeconomic demand curve shows the relationship between the relative price of a good and how much of that good is demanded, while an aggregate demand curve relates the amounts of real goods and services willingly purchased in an economy to the general price level for these goods and services.
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The figure above shows the production possibilities frontier for a country. If the economy is operating at point B, then the opportunity cost of another million gallons of milk is
A) 4 gallons of ice cream for a gallon of milk. B) 3 gallons of ice cream for a gallon of milk. C) 1 gallon of ice cream for a gallon of milk. D) 1/3 of a gallon of ice cream for a gallon of milk. E) zero because after producing another million gallons of milk then zero gallons of ice cream are produced.
What is utility and how do we use the concept of utility to describe a consumer's preferences?
What will be an ideal response?
Use the classical IS-LM model to show the effects of a temporary decrease in government purchases on the equilibrium levels of output, the real interest rate, employment, the real wage, and the price level.
What will be an ideal response?
The following national income statistics are in billions of dollars.
Refer to the above data. Disposable income is:
A.
$383 billion
B.
$372 billion
C.
$271 billion
D.
$212 billion