Long-run full-employment equilibrium assumes:
A. a downward-sloping production function.
B. a downward-sloping long-run supply curve (LRAS).
C. the CPI index price level equals the equilibrium wage rate.
D. aggregate demand (AD) equals short-run aggregate supply (SRAS) equalslong-run aggregate supply (LRAS).?
Answer: D
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In the simple circular flow diagram, the flow of money from the markets for goods and services to the firms is called
a. spending. b. revenue. c. income. d. wages, rent, and profit.
The typical American family spends about ____ percent of its budget on goods and the remainder on services.
A. 22 B. 32 C. 66 D. 80
The figure above shows that the unregulated market equilibrium occurs at a tuition of ________ a year and ________ million students
A) $15,000; 7.5 B) $25,000; 15 C) $15,000; 15 D) $25,000; 7.5 E) $38,000; 7.5
The paradox of value can be resolved by distinguishing between
A) quantity demanded and quantity supplied. B) supply and quantity supplied. C) normative and positive statements. D) total utility and marginal utility.