Which of the following most accurately describes the aggregate supply curve?
a. It shows the price level associated with firms' unit costs and markups for any level of GDP.
b. It is the sum of all individual firms' supply curves.
c. It is determined by the federal government.
d. It shows firms' unit costs for each level of GDP.
e. It shows the equilibrium level of GDP corresponding to each price level.
A
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Use the following graphs to answer the next question.
In the diagrams above, AD1 and AS1 represent the initial state of an economy. If full-employment output is at Q2, which diagram represents the adjustment back to full employment output in the absence of government intervention? ________.
A. panel (A) only B. panel (B) only C. panel (C) only D. panels (B) and (C)
By the 2000s, an important change in the mortgage market had occurred when ________ became significant participants in the secondary market for mortgages
A) Federal Reserve Banks B) commercial banks C) savings banks D) investment banks
Despite the monetary expansion of the 1992–2000 period, the inflation rate
A. rose due to adverse supply shocks. B. rose due to large increases in aggregate demand. C. fell despite adverse supply shocks. D. fell due to favorable supply shocks.
Human capital deepening is typically the most important contributor to U.S. economic growth
a. True b. False Indicate whether the statement is true or false