When the level of output is such that aggregate demand equals aggregate supply,
A. the economy is at the full-employment level of GDP.
B. the economy is at equilibrium GDP.
C. Both of the statements are true.
D. Neither of the statements are true.
B. the economy is at equilibrium GDP.
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A change in the wage rate causes a firm's labor demand curve to shift
a. True b. False
An expansionary monetary policy is most likely to increase real output
a. when the economy is operating at less than full-employment capacity. b. when the economy is at full employment. c. when actual output is beyond the economy's long-run capacity. d. when the inflationary side effects are fully anticipated by decision makers.
The market line must
a. pass through the risk-free asset. b. be linear. c. be tangent to the efficient set. d. all of the above.
If an individual demands a particular good, it means that he or she:
A. Is willing and able to purchase the good at some price. B. Has a strong desire for the good. C. Must need the good. D. Prefers the good over all other choices.