The intersection of the aggregate demand and aggregate supply curves determines the ________.
A. equilibrium level of real domestic output and prices
B. per-unit cost of production in the economy
C. shape of the aggregate demand curve
D. productivity level in the economy
Answer: A
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The federal government has a Constitutional requirement to operate a balanced budget each fiscal year
Indicate whether the statement is true or false
If we assume competitive labor markets, the supply curve of labor when the firm is a monopoly is
A) upward sloping. B) vertical. C) horizontal. D) downward sloping.
Suppose Thelma and Louise both sell fried green tomatoes in a competitive price-taker market. If Louise increases her output,
a. Thelma must reduce output b. the price Thelma can charge falls c. the price Thelma can charge rises d. the price Thelma can charge is unaffected e. Thelma's profits must fall
Suppose that production for good X is characterized by the following production function, Q = K0.5L0.5, where K is the fixed input in the short run. If the per-unit rental rate of capital, r, is $15 and the per-unit wage, w, is $125, then the average fixed cost of using 16 units of capital and 25 units of labor is:
A. $12. B. $56. C. $9. D. There is insufficient information to determine the average fixed costs.