The aggregate demand curve shows:
a. how the equilibrium level of aggregate expenditure changes in response to changes in production.
b. the amount people spend at different real GDP levels.
c. the positive relationship between the price level and real GDP.
d. the negative relationship between aggregate expenditure and real GDP.
e. how the equilibrium level of aggregate expenditure changes as the price level changes.
e
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The above table shows production points on Sweet-Tooth Land's production possibilities frontier. What is the opportunity cost of one chocolate bar if Sweet-tooth Land moves from point C to point D?
A) 30 cans of cola per chocolate bar B) 10 cans of cola per chocolate bar C) 3 cans of cola per chocolate bar D) 1/3 can of cola per chocolate bar
The basic difference between a public bureau and a market firm is that the bureau
a. has an incentive to maximize profits b. has no incentive to minimize costs c. managers do not attempt to maximize their self interest d. managers are more likely to be concerned with the public interest than their own self interest e. faces a budget constraint placed up it by the voters