Aggregate supply is the:
A. total quantity of the production of all the households in the economy.
B. total quantity of goods and services demanded in the economy.
C. market value of the total quantity of goods and services demanded in the economy.
D. market value of the total quantity of goods and services supplied in the economy.
D. market value of the total quantity of goods and services supplied in the economy.
You might also like to view...
See Scenario 4.1. What is Daniel's budget constraint?
A) 240 = 3Pc + 3Pd B) 240 = 3Qc + 3Qd C) 240 = (Pc)(Qc) D) 240 = (Qc)(Qd) E) none of the above
Suppose a multi-product monopolist sells two complementary goods, A and B. Annual market demand for good A is QdA = 600 - 25PA - 12PB. Each time a consumer buys A, his demand for B is QdB = 4 - 0.4PB. The marginal cost of good A is a constant $4, and the marginal cost of good B is a constant $0.50. Suppose the price of good B is $5. What is the effective marginal cost of selling a unit of good A?
A. $5 B. $4 C. -$5 D. -$9
In the aggregate expenditures model, if aggregate expenditures (AE) are greater than GDP, then:
a. inventory is depleted. b. inventory is accumulated. c. inventory is unchanged. d. employment decreases.
If the elasticity of supply coefficient for a good is 6, we know:
a. that for every 1% increase in quantity, there will be a 6% increase in price. b. that for every 1% increase in quantity, there will be a 6% decrease in price. c. that for every 6% increase in quantity, there will be a 1% increase in price. d. that for every 6% increase in quantity, there will be a 1% decrease in price.