-In the Above Figure, If the Economy Moves from Point

question 193

Multiple Choice

-In the above figure, if the economy moves from point a to point b,

• A) there has been a decrease in the quantity of real GDP demanded.
• B) there has been an increase in the quantity of real GDP demanded.
• C) there has been a decrease in the quantity of real GDP supplied.
• D) the natural unemployment rate increases.

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Definitions:

Indifference Curve

A graph that shows combinations of two goods between which a consumer is indifferent, reflecting equal levels of utility for the consumer.

Total Utility

The total satisfaction or benefit received by consuming a given total amount of a good or service.

Money Income

The total amount of monetary earnings or revenue received by an individual or entity, usually measured within a specific period.

Slope

The measure of the steepness or incline of a line, indicating the rate at which y values change with respect to x values.