If a Consumer Is Maximizing Utility,she Will Purchase Quantities of Output

question 147

True/False

If a consumer is maximizing utility,she will purchase quantities of output to the point where the total utility per dollar spent on consumption is equal across all goods.

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Definitions:

Natural Rate

Often refers to the natural rate of unemployment, which is the level of unemployment consistent with a stable rate of inflation, or the equilibrium rate unaffected by short-term fluctuations.

Fully Employed

Refers to a situation where all available labor resources are being used in the most economically efficient way.

GDP

Gross Domestic Product, the total market value of all final goods and services produced within a country in a specific time period.

Natural Rate

The natural rate typically signifies the unemployment rate that maintains a steady inflation rate over time, also known as the natural rate of unemployment.