A relatively flat aggregate demand curve indicates that
A) velocity is relatively constant.
B) the economy is near full employment.
C) inflation is relatively low.
D) spending is sensitive to changes in the price level.
D
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For anything to be considered money it must be
A) either a commodity or a token, as long as it is generally accepted as a means of payment. B) a valuable commodity, such as gold. C) used in barter transactions. D) a mystical token, such as whale teeth. E) a token, such as a green piece of paper.
A monopsonist firm pays a price to a factor that is:
a. equal to the marginal revenue product of the factor. b. greater than the marginal revenue product of the factor. c. equal to the marginal factor cost. d. greater than the marginal factor cost. e. less than the marginal revenue product of the factor.