The intersection between the long-run aggregate supply and aggregate demand curves determines the:
a. level of full-employment real GDP.
b. level of prices (CPI)

c. money supply.
d. marginal product.
e. both a and b.


e

Economics

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Which of the following is NOT a part of the monetary base?

A) Chemical Bank's deposits of reserves at the Fed B) First Bank's required reserves held at the Federal Reserve C) currency D) U.S. government securities owned by the Fed

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If output is increased in the long-run, average production costs in the presence of internal economies of scale will ________, and in the presence of external economies of scale, will ________

A) decrease; decrease B) increase; remain constant C) remain constant; increase D) decrease; remain constant E) increase; decrease

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An optimal purchase is one that maximizes total utility

a. True b. False Indicate whether the statement is true or false

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