The aggregate-demand curve
a. has a slope that is explained in the same way as the slope of the demand curve for a particular product.
b. is vertical in the long run.
c. shows an inverse relation between the price level and the quantity of all goods and services demanded.
d. All of the above are correct.
c
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In the open-economy ISLM model, the goods market equilibrium condition is
A) output = consumption + investment + government spending. B) output = consumption + investment + government spending - tax. C) output = consumption + investment + government spending + net export. D) output = potential output.
When considering setting the transfer price at the market price of a product similar to the intermediate good that is already available on the market
a. It is important to recognize that the market price includes a margin above marginal cost b. It is OK if the product on the market includes costly features your downstream division does not use c. it is OK if the product on the market is inexpensive because its quality is lower than you use d. if it is similar enough, it is justification for you producing it in-house