ECON 1100 Lecture Notes - Ceteris Paribus, Economic Equilibrium, Imperfect Competition

In macroeconomics, _____________________ denotes the relationship between the total quantity of goods and services and the price level for output.

A) macroeconomic equilibrium

B) aggregate supply (AS)

C) aggregate demand (AD)

D) potential GDP

The basic tools of supply and demand are:

A. useful only in the analysis of economic behavior in individual markets.

B. useful in analyzing the overall economy, but not in analyzing individual markets.

C. central to microeconomic analysis, but seldom used in macroeconomic analysis. 

D. central to macroeconomic analysis as well as to microeconomic analysis.

Discuss the differences between the microeconomic definitions of supply and demand and the macroeconomic differences of aggregate supply and demand.