Which of the following adjusts to bring aggregate demand and aggregate supply into balance?
a) the price level but not the quantity of output
b) the quantity of output but not the price level
c) both the price level and the quantity of output
d) variables other than the price level and the quantity of output
Answer: c) both the price level and the quantity of output
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Other things the same, if participants in foreign exchange markets come to expect an increase in the value of the U.S. dollar ________
A) the actual value of the U.S. dollar will not be affected B) the actual value of the U.S. dollar will fall C) the actual value of the U.S. dollar will rise D) one cannot predict the movement of the U.S. dollar in the future
Refer to Figure 9.1. If the government establishes a price ceiling of $20, total consumer and producer surplus will be
A) $30. B) $400. C) $600. D) $900. E) $1200.