When the price level is below the level at which the aggregate demand curve crosses the long run aggregate supply curve
A) total planned real expenditure will be lower than actual real GDP, and the price level will increase.
B) there will be no price level change.
C) there will be pressures that will lead to a shift of either the aggregate demand or the long run aggregate supply curves.
D) total planned real expenditures will exceed actual real GDP, and the price level will increase.
Answer: D) total planned real expenditures will exceed actual real GDP, and the price level will increase.
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Which of the following combinations of factors comes closest to describing the situation in agriculture?
A) elastic demand for agricultural products and large swings in supply B) elastic demand for agricultural products and small swings in supply C) inelastic demand for agricultural products and constant supply D) inelastic demand for agricultural products and large swings in supply E) none of the above
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A) 2 B) 1 C) 3 D) 4
The arrangements that individuals have with each other to exchange goods is known as
A) demand. B) supply. C) a market. D) complements.