We can derive market demand for pears by
a. adding up all the prices people are willing to pay for pears
b. multiplying the number of people times the price of pears
c. adding up the number of pears that producers are willing to sell
d. multiplying the number of pears by the price of pears
e. adding up all the individual demands for pears
E
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The above figure gives your budget line between CDs and magazines. Which combination of CDs and magazines are affordable?
A) combination a B) combinations a, b, c, and d C) combination c only D) combinations b, c, and d
If the output level is such that the aggregate expenditure line lies below the 45-degree line, which of the following is true?
a. Aggregate expenditure is greater than output, so inventories will increase and output will be raised. b. Aggregate expenditure is greater than output, so inventories will decrease and output will be increased. c. Aggregate expenditure is less than output, so inventories will decrease and output will be raised. d. Aggregate expenditure is less than output, so inventories will increase and output will be lowered. e. Aggregate expenditure is greater than output, so inventories will increase and output will be lowered.