The AD curve is a graph depicting the
A) relationship between the price level and the quantity of real GDP demanded.
B) relationship between the price level and potential GDP.
C) relationship between the price level and the quantity of real GDP supplied.
D) business cycle during expansions and recessions.
E) relationship between the aggregate quantity of real GDP demanded and the aggregate quantity of real GDP supplied.
A
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Consider the change in the price of a book depicted in the above figure. The original budget line is BC. The new budget line is BD. As a result of this price change, the income effect can be represented by a movement from
A) point E to point F. B) point G to point A. C) point G to point F. D) point A to point F.
Which of the following is a valid criticism of unregulated monopoly?
a. Monopoly limits the options available to consumers. b. Relative to a competitive market, a monopolist generally will produce too great an output. c. Profit-maximizing monopolists will fail to produce at the lowest possible cost. d. A monopoly's output will often be more than if the market were competitive.