The equilibrium level of output associated with the intersection of the aggregate demand and aggregate supply curves
A. is always a full-employment level of output.
B. may be less than the full-employment level of output but is never above the full-employment level of output.
C. may be above the full-employment level of output but is never less than the full-employment level of output.
D. may occur at output levels that can be either below, at, or above the full-employment level of output.
D. may occur at output levels that can be either below, at, or above the full-employment level of output.
You might also like to view...
Price discrimination:
A. can benefit consumers with a lower willingness to pay when compared to other consumers in the market B. can be a successful strategy for any firm in a competitive market C. tends to decrease the profits of the firm. D. is more successful if resale of the product is possible from one consumer to another.
Contractionary monetary policy
A. tends to lead to a depreciation of a nation's currency. B. usually has no effect on a currency's exchange value. C. tends to lead to an appreciation of the currencies of other nations. D. tends to lead to an appreciation of a nation's currency.