The Unique Equilibrium Output Level in the Short Run Is

question 70

Multiple Choice

The unique equilibrium output level in the short run is found at the intersection of the following curves.

• A) aggregate demand and aggregate supply
• B) aggregate demand and 45 degree line
• C) aggregate supply and 45 degree line
• D) aggregate demand and short-run aggregate supply
• E) aggregate supply and long-run demand

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Definitions:

Demand

The quantity of a product or service that consumers are willing and able to purchase at various prices during a given period.

Equilibrium Wage Rate

The wage rate at which the supply of labor is equal to the demand for labor in the labor market.

Economic Rents

Payments to a factor of production in excess of what is needed to keep that factor in its current use, often due to limited supply or unique attributes.

Wage Rate

The standardized amount of compensation an employee receives from an employer in exchange for their labor, typically expressed per hour or year.