In the short run, the intersection of the aggregate demand and the short-run aggregate supply curves,
A) determines the equilibrium price level.
B) is a point where there is neither a surplus nor a shortage of goods.
C) determines the equilibrium level of real GDP.
D) All of the above answers are correct.
D
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The aggregate supply curve of an economy shows the relationship between the: a. price level and the total number of goods that consumers buy during a given period of time
b. goods that are not purchased during a given period and the wealth created during the given period of time. c. amount of investment spending and the market interest rate of an economy. d. price level and the quantity of all goods sellers are willing and able to provide during a given period of time.
Which of the following statements is correct?
a. Interest would not exist in a nonmonetary economy. b. The present value of a future dollar payment is directly related to the interest rate. c. The present value of a fixed dollar payment to be received in the future will decline as the length of the time before the payment will be received increases. d. During an extended inflationary period, the money (or nominal) interest rate will usually be lower than the real rate of interest.