Purchase Solution

Aggregate supply in macroeconomics

Not what you're looking for?

Ask Custom Question

Aggregate supply reflects billions of production decisions made by:

consumers when they decide which products to purchase.
households and firms, because they each demand goods and services.
the largest firms and largest households.
households, which demand resources, and firms, which supply resources.
resource suppliers and firms.

In the long run, equilibrium output:

occurs when the economy has high levels of unemployment.
equals aggregate supply, and the equilibrium price depends on the aggregate demand curve.
is when actual aggregate expenditures equal real GDP.
occurs when inventories of goods and services are increasing.
occurs when wages are sticky.

If the MPC < 1 and a household's disposable income increases by $2,000, the household's consumption will:

increase by less than $2,000.
increase by $2,000.
decrease if the family was wealthy before the income change.
remain the same unless the change in income significantly affects the household's wealth.
remain the same.

Purchase this Solution
Solution Summary

Aggregate supply is clearly defined.

Solution Preview

macroeconomics
Aggregate supply reflects billions of production decisions made by:

resource suppliers and firms. ...

Purchase this Solution
Free BrainMass Quizzes
Elementary Microeconomics

This quiz reviews the basic concept of supply and demand analysis.

Economic Issues and Concepts

This quiz provides a review of the basic microeconomic concepts. Students can test their understanding of major economic issues.

Basics of Economics

Quiz will help you to review some basics of microeconomics and macroeconomics which are often not understood.

Economics, Basic Concepts, Demand-Supply-Equilibrium

The quiz tests the basic concepts of demand, supply, and equilibrium in a free market.

Pricing Strategies

Discussion about various pricing techniques of profit-seeking firms.

View More Free Quizzes
Related BrainMass Solutions

  • The Concept of Aggregate Demand and Aggregate Supply

    504112 The Concept of Aggregate Demand and Aggregate Supply Define the terms macroeconomics, the multiplier, and aggregate demand and supply. Macroeconomics is the study of the totality of the economy. It studies the economy in whole or aggregates.

  • Question about Microeconomics and Macroeconomics

    One more difference is that in microeconomics, the equilibrium happens when the quantity demanded equals the quantity supplied. In macroeconomics, on the other hand, equilibrium occurs when the aggregate demand equals aggregate supply. 2.

  • Supply and Demand's Significance in Micro/Macro Economics

    Macroeconomics: In Macroeconomics, the supply and demand model is called The Aggregate Demand-Aggregate Supply model.

  • concept of comparative advantage

    Discuss the concept of macro economic equilibrium in terms of injections and withdrawals from the circular flow of wealth and in terms of aggregate demand and aggregate supply. 2. Discuss the concept of fiscal policy and problems that may arise.

  • Annotated answers to common Macroeconomics test questions

    Answers and explanations to a 10-question Macroeconomics test. Topics covered include shifts in the aggregate supply and aggregate demand curves, and changes in GDP and price levels.

  • Macroeconomic Issues

    Self-correction takes place in the short run by increasing aggregate supply, and in the long run by lowering wages.

  • Difference Between Microeconomics and Macroeconomics

    This will cause an increase in money supply thereby leading to greater demand. Hence there will be rightward shift in Aggregate demand.

  • Phillips Curve Multiple Choice

    317280 Macroeconomics Test Preparation 3 I'm requesting assistance with the below questions in order to prepare for an exam. The course is "Macroeconomics" author: Robert J. Gordon 11th edition text.

  • Currencies AS/AD Model

    For a): The deep fall in the stock market Fall 2008 to early March 2009 on Aggregate Demand For b): The sharp fall in oil prices on Aggregate Demand and Aggregate Supply.

View More Related Solutions