Macro Equilibrium Always Occurs When

question 136

Multiple Choice

Macro equilibrium always occurs when

• A)Aggregate supply is greater than aggregate demand.
• B)The labor force is fully employed.
• C)Aggregate demand equals aggregate supply at a given average price level.
• D)The level of output is expanding.

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Definitions:

Reality Principle

A psychoanalytic concept where behavior is governed by the considerations of the external world, in contrast to the pleasure principle.

Ego

In psychoanalytic theory, the part of the psyche that mediates between the demands of the id, superego, and reality.

Id

In Freudian psychology, the part of the human psyche that is the source of instinctual impulses and demands for immediate satisfaction of basic needs.

Superego

A component of Sigmund Freud's psychoanalytic theory, representing the ethical or moral conscience.