This economic term or expression refers to markets and prices determining what gets bought and sold in our economy, seemingly almost automatically without interference or orders from anyone.

If aggregate demand increases in the intermediate range of the aggregate supply curve then the:

a. price level rises and real GDP falls. b. price level rises and real GDP rises. c. price level falls and real GDP falls. d. price level falls and real GDP rises.

For a perfectly competitive firm

A) price is greater than marginal revenue. B) price equals marginal revenue. C) price is less than marginal revenue. D) there is no relationship between price and marginal revenue.