The intersection of the aggregate supply and aggregate demand curves shows the equilibrium level of real GDP and ________ level in the economy.
a. cost
b. price
c. savings
d. employment
b. price
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Refer to Scenario 1-2. Using marginal analysis terminology, another economic term for the incremental cost of producing the last 300 hats is
A) marginal cost. B) explicit cost. C) operating cost. D) Any of the above terms are correct.
Expansionary monetary policy will decrease interest rates and decrease the velocity of money.
Answer the following statement true (T) or false (F)
If the market demand increases for a good sold in a perfectly competitive market, individual firms in the market:
A. will be able to charge a higher price for their product. B. will need to lower price in order to remain competitive. C. will not be able to change their price. D. will begin earning economic losses.
In terms of aggregate supply, the short run is a period in which:
A. the price level is constant. B. employment is constant. C. real output is constant. D. nominal wages and other resource prices are unresponsive to price-level changes.