Use the Following to Answer Questions

question 13

Multiple Choice

Use the following to answer questions .
Exhibit: The Aggregate Demand/Aggregate Supply Model 2
-(Exhibit: The Aggregate Demand/Aggregate Supply Model 2) What are the prevailing price level and the output level in the economy?

• A) Price level = P₁; real GDP = Y_p
• B) Price level = P₁; real GDP = Y₁
• C) Price level = P₂; real GDP = Y₂
• D) Price level = P₃; real GDP = Y_p

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Definitions:

Internal

Refers to something situated on the inside or occurring within an entity or organization.

Stable Factors

Characteristics or elements that remain constant over time in a given context or system.

External

Pertaining to or situated on the outside of something; relating to the outer environment or surroundings.

Unstable

Lacking in stability, predictability, or consistency, often leading to unpredicted changes or outcomes.