Data on output and aggregate expenditure in Macroland are given below.Output(Y)Aggregate Expenditure1,0001,7502,0002,5003,0003,2504,0004,0005,0004,750Based on these data, the short-run equilibrium level of output is:
A. 5,000.
B. 2,500.
C. 4,000.
D. 1,000.
Answer: A
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Which of the following is an example of price discrimination?
A) Increasing the price of a product when demand for the product increases. B) Charging different prices for a product in different regions of the country due to differences in transportation costs. C) Bundling complementary products to attract additional sales. D) Reducing the price of a product to reduce excess inventory.
Use the above figure. The long-run Phillips curve is best depicted by graph
A) A. B) B. C) C. D) D.
Suppose you inherit the only spring of mineral water in an area and want to maximize profits from this costless product. You would ask your customers to bring their containers with them and:
a. charge them the highest price possible to sell some output. b. charge them the lowest price possible to sell as much as you can. c. ask them how much they would like to pay and accept it. d. charge the price at which MR is zero. e. charge the price at which MR is maximum.
Ralph Nader has long argued that large corporations in oligopolistic markets should use their vast productive powers to redress social ills. Implementing this policy may put companies:
A. in conflict with its trade unions. B. in conflict with their international policies. C. in conflict with the government. D. in conflict with the process of wealth maximization.