The aggregate supply and aggregate demand model is used to explain:
A. how individual markets affect other markets.
B. how entire markets operate, not just each individual seller within a market.
C. the market price determined by all buyers and all sellers interacting in a market.
D. how output, prices, and employment are tied together in a single economic equilibrium
D. how output, prices, and employment are tied together in a single economic equilibrium
You might also like to view...
What is the ceteris paribus condition?
What will be an ideal response?
In order to derive an individual's demand curve for salmon, we would observe what happens to the utility-maximizing bundle when we change
A) income and hold everything else constant. B) tastes and preferences and hold everything else constant. C) the price of a close substitute and hold everything else constant. D) the price of the product and hold everything else constant.
Expected utility is
A) the maximum utility that a person can get from a set of possible outcomes. B) the probability-weighted mean of the utility gained from a set of possible outcomes. C) negative for risk-averse people. D) indeterminant for risk preferring people.
In the long run
a. all inputs are fixed. b. all inputs are variable. c. some inputs are fixed. d. production levels never change.