The equilibrium of aggregate supply and aggregate demand represents the:
A. overall state of the national economy.
B. total of all goods and services produced in the major sectors of the economy.
C. general price level of the economy with respect to goods and services households purchase.
D. All of these are true.
A. overall state of the national economy.
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Government regulation of _______________ protects customers from high prices in situations where there is no competition that would ordinarily keep prices down.
a. natural monopolies b. monopolistic competition c. perfect competition d. luxury markets
Lorna's Lumberyard is a monopsony. Lorna estimates that at a wage of $10 per hour, 100 workers would be willing to work for her. Similarly, at a wage of $12 per hour, 200 workers would be willing to work. Her marginal labor cost is
a. $10 b. $14 c. $120 d. $140 e. $240
Between 1775 and 1780, $242 million of Continental Notes were printed. As the quantity of the Continentals multiplied,
a. the demand for these notes multiplied as well b. their value depreciated c. their value appreciated d. banks on the European continent intervened to stabilize the value of the Continental notes e. silver and gold became less valuable
If P = MC and MC > ATC, then a perfectly competitive firm will earn ________ profits.
A. positive B. break-even C. negative D. zero