The Curve That Shows the Quantity of Goods and Services

question 16

Multiple Choice

The curve that shows the quantity of goods and services that firms produce and sell

• A)as it relates to the quantity of goods and services that buyers want to buy is called the aggregate-demand curve.
• B)as it relates to the quantity of goods and services that buyers want to buy is called the aggregate-supply curve.
• C)as it relates to the overall price level is called the aggregate-demand curve.
• D)as it relates to the overall price level is called the aggregate-supply curve.

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Definitions:

Economic Rents

Earnings exceeding the minimum amount necessary to keep a factor of production in its current use, often associated with imperfect competition or unique resources.

Land Ownership

The legal right to possess, use, and manage a piece of land.

Compound Interest

The accumulation of money that builds over time in an investment or interest-bearing account as new interest is earned on previous interest that is not withdrawn.

Savings Account

A deposit in a commercial bank or thrift institution on which interest payments are received; generally used for saving rather than daily transactions; a component of the M2 money supply.