In the AD/AS model, a point where the economy's long-run AS curve, short-run AS curve, and AD curve all intersect at a single point represents a point where:
a. real GDP is equal to its full-employment level.
b. all of these choices.
c. the conditions of short-run equilibrium are fulfilled.
d. the conditions of long-run equilibrium are fulfilled.
b
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Economics assumes people
A) tend to compete more in markets than they do in government. B) tend to cooperate more in markets than they do in government. C) try to advance their own projects in market and government processes. D) try to pursue the public interest but find over time that only private interests matter.
According to economic theory, a politician
A) expands activities whose marginal benefit exceeds marginal cost. B) contracts activities whose marginal cost exceeds marginal benefit. C) does not necessarily act on narrow or selfish interests. D) does all of the above. E) does none of the above.