Refer to the above figure. If the price level is 80
A) the total planned real expenditures by individuals, businesses, and the government are less than total planned production by firms.
B) the aggregate demand curve will automatically shift leading to a stable equilibrium.
C) the economy will have economic growth and the new equilibrium price level will be 80.
D) the total planned real expenditures by individuals, businesses, and the government exceed total planned production by firms.
D
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A free market is a market:
A) that has price controls imposed by a ruling authority. B) where almost all exchanges take place involuntarily. C) where determination of equilibrium quantity is free from the forces of demand and supply. D) that operates with little or no government control.
Because resources are scarce, economists would say that
A) people's wants are unlimited. B) anything worth doing is worth doing well. C) every choice has an opportunity cost. D) there are no benefits from cooperation. E) the best things in life are always free.