Which of the following correctly describes the condition that generates the equilibrium levels of price and aggregate output in the economy?
a. When the U.S. budget is balanced
b. When aggregate quantity demanded is maximized
c. When aggregate supply minus aggregate demand equals the price level
d. When aggregate demand equals aggregate supply
d
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Jennifer's Bakery Shop produces baked goods in a perfectly competitive market. If Jennifer decides to produce her 100th batch of cookies, the marginal cost is $120. She can sell this batch of cookies at a market price of $110
To maximize her profit, Jennifer should A) not produce this additional batch. B) produce this batch of cookies because they will help lower her average fixed cost. C) charge $120 for this batch. D) shut down. E) produce this batch of cookies because their MR exceeds their MC.
For many small firms, providing health insurance for their workers
A) represents their most rapidly increasing cost. B) costs virtually nothing under the ACA. C) encourages them to hire more full-time workers. D) has decreased in cost over the past 10 years.
When aggregate demand shifts rightward along the short-run aggregate-supply curve, inflation
a. increases and unemployment increases. b. increases and unemployment decreases. c. decreases and unemployment increases. d. decreases and unemployment decreases.
What is the difference between economic investment and financial investment? Give an example for each type of investment
What will be an ideal response?