The model of aggregate demand and aggregate supply is nothing more than a large version of the model of market demand and market supply
a. True
b. False
Indicate whether the statement is true or false
False
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A credible nominal anchor
A) can help overcome the time-inconsistency problem by providing an expected constraint on discretionary policy. B) can help to anchor inflation expectations, which leads to smaller fluctuations in inflation. C) is required for a policy rule. D) all of the above. E) both A and B.
Other things equal, a decrease in the personal income tax rate will ________ disposable income, which leads to ________ in output and employment
A) increase; an increase B) increase; a decrease C) decrease; an increase D) decrease; a decrease
If V were 8, P = 4, and M = 700, how much would Q be?
What will be an ideal response?
Refer to the information provided in Figure 9.3 below to answer the question(s) that follow. 
Figure 9.3Refer to Figure 9.3. This firm will earn a zero economic profit if price is
A. $0. B. $4. C. $7. D. $13.