In the long run, the price level in an economy is determined solely by:

a. the aggregate demand curve.
b. the amount of cyclical unemployment in the economy.
c. the long-run aggregate supply curve.
d. the short-run aggregate supply curve.
e. the actual output level.


Ans: a. the aggregate demand curve.

Economics

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What will be an ideal response?

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Aggregate income is the sum of:

A. employee compensation, rent, and profits. B. employee compensation, rent, profits, interest, and transfer payments. C. employee compensation and profits. D. employee compensation, rent, profits, and interest.

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The further in the future a payment is received, the more it is worth today.

Answer the following statement true (T) or false (F)

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Which of the following does not reflect a positive rate of time preference?

a. People are willing to pay high prices to see new movies at first-run theaters. b. A bank pays interest on savings accounts. c. Ed puts money in his mattress for a rainy day. d. Dry cleaners that provide faster service can charge more. e. A college freshman parties all semester, then stays awake studying for 50 straight hours during final exam week.

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