Microeconomic substitution is impossible for the economy as a whole because a. money is a veil. b. the prices of some goods and services adjust sluggishly in response to changing economic conditions. c. a lower price level increases real wealth, which stimulates spending by consumers and vice-versa. d. real GDP measures the total quantity of goods and services produced by all firms in all markets.
Microeconomic substitution is impossible for the economy as a whole because a. money is a veil. b. the prices of some goods and services adjust sluggishly in response to changing economic conditions. c. a lower price level increases real wealth, which stimulates spending by consumers and vice-versa. d. real GDP measures the total quantity of goods and services produced by all firms in all markets.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
Related questions
Question
a. |
money is a veil.
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b. |
the prices of some goods and services adjust sluggishly in response to changing economic conditions.
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c. |
a lower price level increases real wealth, which stimulates spending by consumers and vice-versa.
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d. |
real GDP measures the total quantity of goods and services produced by all firms in all markets.
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