According to classical economics:
a. real GDP is determined by aggregate demand, while the equilibrium price level is determined by aggregate supply.
b. both real GDP and price level are determined by aggregate demand.
c. both real GDP and price level are determined by aggregate supply.
d. real GDP is determined by aggregate supply, while the equilibrium price level is determined by aggregate demand.
e. price level cannot be changed as prices and wages are perfectly rigid.
d
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A meditation class meets on the second floor of a building; the first floor is a nightclub. The loud music from the club disturbs the classes. Which of the following best explains why the negative externality faced by the class arises?
a. The class has no property right to a quiet environment. b. The club has a property right on the ground floor. c. The class has a property right on the second floor. d. The club uses an inappropriate technology (i.e., no soundproofing). e. Both the club and class are profitable.
One of the reasons communism failed was because:
a. governments ran out of money. b. workers received the same pay whether or not they worked hard. c. there was no unemployment. d. Mao Zedong passed away. e. technological improvements were impossible in a communist economy.
After the Taft-Hartley Act was enacted, unions ______.
a. were more powerful than ever b. had some powers restricted c. called for an 80-day cooling off period d. were less subject to oversight
Total Variable Cost (TVC)
What will be an ideal response?