Use the following table, which shows the aggregate demand and aggregate supply schedule for a hypothetical economy, to answer the next question.Real Domestic Output Demanded (in billions)Price Level (index value)Real Domestic Output Supplied (in billions)$3,000350$9,0004,0003008,0005,0002507,0006,0002006,0007,0001505,0008,0001004,000At the price level of 150, there will be a general ________.
A. shortage in the economy, and output demanded will increase as the price level falls
B. surplus in the economy, and output supplied will increase as the price level rises
C. surplus in the economy, and output supplied will decrease as the price level falls
D. shortage in the economy, and output demanded will decrease as the price level rises
Answer: D
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The figure above shows the U.S. supply of labor curve. What was the effect of the decline in birth rates during the 1960s and 1970s on the supply of labor curve in the 1980s?
A) a leftward shift of the supply of labor curve B) a rightward shift of the supply of labor curve C) a movement downward along the supply of labor curve from a point such as A to a point such as B D) The supply of labor curve became steeper. E) None of the above answers is correct because there was no change in the supply of labor curve.
Explain why the education of girls is probably the most cost-effective development investment. Be sure to include in your answer some discussion of at least two of the following: absolute poverty, health and development, fertility, and agriculture
What will be an ideal response?
As output expands, the slope of the average total cost curve
a. stays negative throughout b. stays positive throughout c. is first negative and then positive d. is first positive and then negative e. is constant
Assume a bank currently holds $75 million in demand deposits, $10 million in vault cash and $25 million deposited at the Federal Reserve. If the required reserve ratio is 15 percent, how much must the bank hold in required reserves?
a. $15.0 million b. $3.75 million c. $11.25 million d. $16.5 million e. $12.75 million.