In the figure above, if real GDP is $10 trillion, aggregate planned expenditure is
A) equal to $10 trillion and there are no unplanned inventory changes.
B) less than $10 trillion and unplanned inventory changes are positive.
C) equal to $10 trillion and unplanned inventory changes are negative.
D) more than $10 trillion and unplanned inventory changes are negative.
E) equal to $10 trillion and unplanned inventory changes are positive.
D
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Which one of the following statements about water pricing in the United States is true?
a. As most water utilities are monopolies, they tend to make excessive profits b. Water prices are normally set according to the average cost of providing water c. Water prices are normally set according to the marginal water cost of providing water d. Water prices are normally set according to the interaction of supply and demand e. Water prices fluctuate significantly based on changes in seasonal demands
What does it mean to say that a perfectly competitive firm is a price taker? Can't a firm set any price it chooses?
What will be an ideal response?