To determine the price level and aggregate output, the aggregate demand and aggregate supply must
A. intersect.
B. be considered as a multiplier.
C. be disregarded.
D. be considered separately.
Answer: A
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The infant industry argument calls for active government involvement
A) only if the government forecasts are accurate. B) only if some market failure can be identified. C) only if the industry is not one already dominated by industrial countries. D) only if the industry has a high value added. E) only if the industry is independently able to earn high returns.
The Condorcet paradox can arise with:
A. first-past-the-post voting. B. approval voting. C. run-off elections. D. pair-wise majority voting.
The term "import" refers to:
a. a purchase of goods or services from another country. b. a business transaction between two or more domestic firms. c. a sale of goods or services to another nation. d. a tax on foreign merchandise. e. a trade agreement between two industrial countries.
In a typical graph for a purely competitive firm, the intersection of the total cost and total revenue curves would be:
A. a break-even point. B. a point of maximum economic profit. C. a point where MR = MC. D. a point of minimum economic loss.