When aggregate demand exceeds current production
A. both output and the price level are in equilibrium.
B. output is not in equilibrium, but the price level is.
C. prices are not in equilibrium, but output is.
D. neither output nor the price level is in equilibrium.
Answer: D
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If capital inflows decrease due to higher interest rates in other countries and large amounts of import spending, there will be:
A) upward pressure on a country's exchange rate. B) downward pressure on a country's exchange rate. C) no pressure on a country's exchange rate. D) none of the above.
Economic efficiency requires that a natural monopoly's price be
A) equal to average total cost where it intersects the demand curve. B) equal to marginal cost where it intersects the demand curve. C) equal to average variable cost where it intersects the demand curve. D) equal to the lowest price the firm can charge and still make a normal profit.
Why are only final goods and services included in measuring GDP? Give examples to complete your answer
What will be an ideal response?
The prisoner's dilemma game can involve:
A. only two players. B. more than two players. C. multiple organizations. D. All of these statements are true.