Refer to the Information Provided in Table 24

question 48

Multiple Choice

Refer to the information provided in Table 24.5 below to answer the question(s) that follow.
Table 24.5
All Numbers are in $ Million
-Refer to Table 24.5. The equilibrium level of aggregate output is $________ million.

• A) 1,200
• B) 1,300
• C) 1,400
• D) 1,500

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Definitions:

Fixed Input

A resource or factor of production whose quantity remains constant regardless of the level of output or activity.

Short Run

A period in economics where at least one input is fixed and cannot be changed, limiting the ability to increase production.

Long Run

A period of time in economics wherein all inputs and factors of production can be varied, with no fixed factors.

Variable Inputs

Resources or factors of production that can be adjusted in the short run to meet changes in demand.