The aggregate demand curve tells us equilibrium real GDP at any price level
a. True
b. False
A
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What are sticky prices, and how can contracts make them "sticky"?
What will be an ideal response?
The value of the marginal product of labor can be calculated as the price of the final good minus the marginal product of labor
a. True b. False Indicate whether the statement is true or false
The government establishes the rules of the game for economic transactions in order to
A. Encourage spillover costs. B. Discourage the ownership of property. C. Legitimatize and enforce contracts. D. Discourage the production of capital.
Consumers do not have a strong preference for the output of one seller over that of another in a perfectly competitive market because:
A. there a large number of firms in the market. B. the firms sell a standardized product. C. there are no barriers to entry. D. an individual firm has control over price.