The model of aggregate demand and aggregate supply
a. is different from the model of supply and demand for a particular market, in that we cannot focus on the substitution of resources between markets to explain aggregate relationships.
b. is different from the model of supply and demand for a particular market, in that we have to separate real and nominal variables in the aggregate model.
c. is a straightforward extension of the model of supply and demand for a particular market, in which substitution of resources between markets is highlighted.
d. is a straightforward extension of the model of supply and demand for a particular market, in which the interaction between real and nominal variables is highlighted.
a
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Refer to Figure 4-3. If the market price is $4.00, what is the maximum number of ice cream cones that Kendra will buy?
A) 0 B) 2 C) 3 D) 4
Modern statistical methods have created a new branch of economics called
a. microeconomics b. macroeconomics c. econometrics d. abstract economics e. positive economics
Proponents of rational expectations argue that failing to account for peoples' revised inflation expectations led to estimates of the sacrifice ratio that were too high
a. True b. False Indicate whether the statement is true or false
If a decrease in net taxes in the United States resulted in a very large increase in aggregate output and a very small increase in the price level, then the U.S. economy must have been
A. on the very flat part of the short-run aggregate demand curve. B. on the very steep part of the short-run aggregate demand curve. C. on the very steep part of the short-run aggregate supply curve. D. on the very flat part of the short-run aggregate supply curve.