Referring to the Aggregate Demand - Aggregate Supply diagram in Figure 8.1, which box should be filled with the label RGDP* for the macroeconomic equilibrium level of Real Gross Domestic Product? 
A. Box 1
B. Box 5
C. Box 2
D. Box 6
Answer: B
You might also like to view...
What are the five main economic goals of the United States?
What will be an ideal response?
If a firm is currently equating MR and MC and product price = $24, AVC = $22, and ATC = $26, then in the long run this firm:
a. will continue to operate at a loss. b. will earn a positive profit. c. will go out of business. d. should increase output. e. should decrease price.
Which of the following taxes is based on the ability-to-pay principle?
a. Road taxes paid by the buyers of gasoline b. Progressive income taxes that pay for scientific research c. Payroll taxes that pay for Social Medicare d. Education taxes paid by parents
The balance of payments constraint refers to the limits on:
A. exchange rate policy imposed by flexible exchange rates. B. currency convertibility observed in most developing countries. C. domestic macroeconomic policy, arising from a shortage of international reserves. D. macroeconomic policy resulting from IMF conditionality.