Aggregate Demand Includes

question 29

Multiple Choice

Aggregate demand includes

• A)only the quantity of goods and services households want to buy.
• B)only the quantity of goods and services households and firms want to buy.
• C)only the quantity of goods and services households,firms,and the government want to buy.
• D)the quantity of goods and services households,firms,the government,and customer abroad want to buy.

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Definitions:

Marginal Revenue Product

The additional revenue a firm gains from employing one more unit of input, holding all other inputs constant.

Output

The amount of goods or services produced by a company, industry, or economy within a specified period.

Profit-Maximizing

A strategy where a firm determines the price and production level that generates the highest possible profit.

MRP

The additional revenue a firm gains from hiring an additional unit of input, such as labor, in the production of goods.