If the equilibrium price level is 135 but the actual price level is 150, then
A) firms increase their production because they are able to sell their output at a higher than expected price.
B) aggregate demand will decrease to restore equilibrium.
C) aggregate demand will increase to restore equilibrium.
D) the quantity of real GDP demanded is less than the quantity of real GDP supplied.
E) the quantity of real GDP demanded is greater than the quantity of real GDP supplied.
D
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Based on the figure above, curve C is the firm's
A) marginal cost curve. B) total cost curve. C) average total cost curve. D) average variable cost curve. E) average fixed cost curve.
Mortgage lenders often resell mortgages in secondary markets. How might this make lenders act differently than if they intended to hold the mortgages themselves?
What will be an ideal response?