The Combination of Price Level and Real Output That Is

question 58

Multiple Choice

The combination of price level and real output that is compatible with both aggregate demand and aggregate supply is the definition of

• A)Full-employment GDP.
• B)Disposable income.
• C)Macro equilibrium.
• D)Real expenditures.

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Definitions:

Output

The quantity of goods or services produced by a firm, industry, or economic system.

Diminishing

A principle often observed in economics where additional units of a variable factor increase total output at a decreasing rate.

Positive Constants

Fixed values greater than zero that appear consistently within a mathematical equation or expression.

Isoquant Slope

The slope of an isoquant curve represents the rate at which one input can be substituted for another while maintaining the same level of output in production theory.