What happens to prices and unemployment when aggregate demand changes in the intermediate zone?
a. They do not change.
b. They both decrease.
c. They both increase.
d. They move in opposite directions.
d. They move in opposite directions.
You might also like to view...
Suppose that the market demand curve is 
and the market supply curve is 
.
a. Calculate the equilibrium price and output level.
b. Suppose a price ceiling of 6 is imposed. What is the new equilibrium quantity transacted in the market?
c. How does the price consumers pay (including any marginal effort costs) compare to the price firms receive? d. What is the total cost of the additional effort exerted by consumers? What will be an ideal response?
Explain the relationship between the incidence of a tax and elasticity
What will be an ideal response?
A good purchase for an investor seeking a high degree of liquidity with minimal market risk would be a U.S
A) Treasury bill. B) Treasury bond. C) Treasury note. D) savings bond.
There is only one efficient allocation of resources in an economy at one point in time.
Answer the following statement true (T) or false (F)