Question on aggregate supply

Reference no: EM1369088

Aggregate supply reflects billions of production decisions made by:

consumers when they decide which products to purchase.
households and firms, because they each demand goods and services.
the largest firms and largest households.
households, which demand resources, and firms, which supply resources.
resource suppliers and firms.

In the long run, equilibrium output:

occurs when the economy has high levels of unemployment.
equals aggregate supply, and the equilibrium price depends on the aggregate demand curve.
is when actual aggregate expenditures equal real GDP.
occurs when inventories of goods and services are increasing.
occurs when wages are sticky.

If the MPC < 1 and a household's disposable income increases by $2,000, the household's consumption will:

increase by less than $2,000.
increase by $2,000.
decrease if the family was wealthy before the income change.
remain the same unless the change in income significantly affects the household's wealth.
remain the same.

Reference no: EM1369088

Questions Cloud

Explain why chrysler decision might have been prompted : Explain why Chrysler's decision might have been prompted by movements in its wage costs or capital cost, or both.

Write program using ias instruction set : Form the array C such that C(I)=A(I)+B(I) for I=1,2,...,1000. using IAS instruction set, write down program for this problem with assembly.

Why does an individual demand curve normally slope down : Why does an individual's demand curve normally slope down. Why does a market demand curve normally slope down. Why does a firm's supply curve normally slope up. Why does a market supply curve normally slope up.

What is the acceleration during the time car is stopping : If the car had been going 10m/s but had stopped in the same d = 167m distance, what would its acceleration have been.

Question on aggregate supply : Aggregate supply reflects billions of production decisions made through, consumers when they decide which products to buy.

What is incidence of tax that falls on producers : Suppose that government decides to charge cola consumers a tax. What is incidence of tax that falls on producers.

Submit a research-based paper based on an occurrence : Prepare and submit a research-based paper based on an occurrence that has already occurred within your industry that required your organization to change or react in some manner for sustainability and or growth.

What are the forces acting on a ascending elevator : A bale of hay sits on the bed of a trailer. The trailer is starting to accelerate forward, and the bale is slipping toward the back of trailer. What would a force diagram and a free-body diagram look like for the above situation.

What will happen to price paid by us consumers : What will happen to price at which fisherman can sell lobsters. What will happen to price paid by U.S. consumers. What will happen to quantity consumed by U.S consumers.

User Account

All Pages