Macro equilibrium always occurs:
A. When aggregate supply is greater than aggregate demand.
B. When the labor force is fully employed.
C. When aggregate demand equals aggregate supply at the average price level.
D. At a zero inflation rate.
C. When aggregate demand equals aggregate supply at the average price level.
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How can one tell from cross elasticity what kind of relationship exists between any two goods?
What will be an ideal response?
The best known financial auction market is the
A) New York Stock Exchange. B) American Stock Exchange. C) Pacific Stock Exchange. D) Nasdaq.
For most residential telephone service, people pay a monthly fee to have a hookup to the telephone company's line plus a fee for each call actually made. Under this pricing scheme, the telephone company is using
A) limit pricing. B) a two-part tariff. C) second-degree price discrimination. D) two stage price discrimination.
If labor supply decreases, what will happen to the real wage rate, employment, and real output, assuming no change in labor demand?
a. The real wage will increase, employment will decrease, and real output will increase. b. The real wage will decrease, employment will decrease, and real output will increase. c. The real wage will increase, employment will decrease, and real output will decrease. d. The real wage will increase, employment will increase, and real output will increase. e. The real wage will decrease, employment will increase, and real output will increase.