The model of aggregate demand and aggregate supply
a. is different from the model of supply and demand for a particular market, in that we cannot focus on the substitution of resources between markets to explain aggregate relationships.
b. is different from the model of supply and demand for a particular market, in that we have to separate real and nominal variables in the aggregate model.
c. is a straightforward extension of the model of supply and demand for a particular market, in which substitution of resources between markets is highlighted.
d. is a straightforward extension of the model of supply and demand for a particular market, in which the interaction between real and nominal variables is highlighted.
a
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The Federal Open Market Committee oversees the buying and selling of:
a) government securities. b) foreign currencies. c) imports. d) corporate debt.
Over a year, a nation's GDP at current prices rose by 15 percent while the price index increased from 100 to 110. GDP at constant prices rose by about:
A. 3 percent B. 5 percent C. 7 percent D. 9 percent