The vertical axis for an aggregate demand curve measures
A. real Gross Domestic Product? (GDP).
B. quantity demanded of the representative good.
C. the interest rate.
D. the price level.
D. the price level
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Marginal benefit is the benefit that your activity provides to someone else
Indicate whether the statement is true or false
If an aluminum manufacturer does not bear the entire cost of the smoke it emits, it will
a. emit a lower level of smoke than is socially efficient. b. emit a higher level of smoke than is socially efficient. c. emit an acceptable level of smoke. d. not emit any smoke in an attempt to avoid paying the entire cost.
A budget philosophy using fiscal policy to achieve the economy's potential GDP, rather than balancing budgets either annually or over the business cycle is termed as budget finance
Indicate whether the statement is true or false
Business cycles are short-term fluctuations in the economy relative to the long- term trend in ______.
a. interest rates b. inflation c. output d. employment