Being paid a wage more than your opportunity costs is an example of

In order to societies to reap the gains from trade, it is necessary to

A) define and enforce property rights. B) foster economic growth. C) distribute resources equally. D) achieve productive efficiency.

When an aggregate demand shock hits the economy ________

A) there is no conflict for the central bank between pursuing price or output stability because of the divine coincidence B) the same long-run equilibrium real interest rate is reached whether the central bank intervenes or not C) the long-run level of output is unaffected D) all of the above E) none of the above