Use the Following Figure to Answer the Questions : Figure

question 100

Multiple Choice

Use the following figure to answer the questions : Figure 8.4:
-Using Figure 8.5,if the equilibrium real output is Q₂ then

• A)Aggregate demand must be AD₁.
• B)Aggregate demand could be either AD₁ or AD₂ depending on the level of aggregate supply.
• C)The equilibrium price level is P₂.
• D)Aggregate supply must be AS1 and the equilibrium price level must be P₁.

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Definitions:

Economic Profits

The excess amount after subtracting total expenses from total revenues, considering both explicit and implicit costs.

Demand Curves

A graph representing the relationship between the quantity of a good consumers are willing and able to purchase and its price.

Industry

A sector of the economy that produces goods, services, or related products, categorized by their business activities.