In the Short Run, the Intersection of the Aggregate Demand

question 402

Multiple Choice

In the short run, the intersection of the aggregate demand and the short- run aggregate supply curves,

• A) determines the equilibrium level of real GDP.
• B) is a point where there is neither a surplus nor a shortage of goods.
• C) determines the equilibrium price level.
• D) All of the above answers are correct.

---

Definitions:

Natural Selection

A fundamental mechanism of evolution where organisms better adapted to their environment are more likely to survive and reproduce.

Evolutionary Theory

A scientific theory that explains the diversity of life on Earth by proposing that life evolves over time through processes of natural selection and genetic variation.

Common Ancestor

The most recent individual from which all organisms in a group are directly descended.

Directional Selection

A form of natural selection where one extreme phenotype is favored over others, causing the allele frequency to shift in one direction.