Which of the following is TRUE?
A) Points along the aggregate supply curve show the equilibrium levels of output and prices that are consistent on the demand side of the economy.
B) Points along the aggregate demand curve show the equilibrium levels of output and prices that are consistent on the supply side of the economy.
C) Aggregate demand shows the levels of GDP and prices where expenditure decisions and production decisions match.
D) Aggregate supply shows the levels of GDP and prices where expenditure decisions and production decisions match.
C
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The price of one product in terms of another commodity is called its
A) relative price. B) money price. C) financial price. D) converse price.
The market system fails to provide the efficient output of public goods because: a. people place no value on public goods
b. private firms cannot restrict the benefits from those goods to consumers who are willing to pay for them. c. public enterprises can produce those goods at lower cost than private firms. d. public goods create widespread spillover costs.